Ford Motor Co.
) is set to report first-quarter 2014 results on Apr 25. In the
last quarter it posted a +10.71% surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
Ford is pursuing a major expansion plan in the emerging
markets, primarily in Argentina, Brazil, China, India and
Thailand. The company has plans to launch 15 new models in China
by 2015. The popularity of the expanded product line-up boosted
the automaker's sales in China by 45% in the first quarter.
However, sales in the U.S. declined in the first 2 months of
2014, resulting in a 2.6% fall in Ford's U.S. sales in the first
quarter of 2014, despite a 3.4% increase in March. Moreover, the
company's structural costs are increasing due to higher volumes
as well as expansion and improvement of its product line-up.
Further, wholesale volume in North America is expected to be
lower than the 2013 figure due to production downtime associated
with model changeovers. Ford is also experiencing weakness in
South America due to economic problems and uncertainties in
Venezuela and Argentina and weakness in the Brazilian
Our proven model does not conclusively show that Ford is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
The Earnings ESP, which represents the difference between
the Most Accurate estimate and the Zacks Consensus Estimate, is
-3.13%. That is because the Most Accurate estimate stands at 31
cents while the Zacks Consensus Estimate is higher at 32
Zacks Rank #3 (Hold):
Ford's Zacks Rank #3 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Magna International Inc.
), with Earnings ESP of +2.59% and a Zacks Rank #2 (Buy).
Fox Factory Holding Corp
), with Earnings ESP of +12.50% and a Zacks Rank #2.
), with Earnings ESP of +4.00% and a Zacks Rank #2.
FORD MOTOR CO (F): Free Stock Analysis Report
FOX FACTORY HLD (FOXF): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
PACCAR INC (PCAR): Free Stock Analysis Report
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