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Can Ford's Fundamental Strength Offset Regional Headwinds?
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On Jun 28, 2016, we issued an updated research report on Ford Motor Company (F - Free Report) . The company currently carries a Zacks Rank #3 (Hold).
Ford is witnessing strong sales volumes in all major markets. This has been boosting its revenues. The company posted adjusted earnings per share of 68 cents in the first quarter of 2016, 39 cents higher than the figure recorded in first-quarter 2015 (excluding special items). Moreover, earnings per share surpassed the Zacks Consensus Estimate of 43 cents.
Revenues in the reported quarter increased to $37.7 billion from $33.9 billion in the year-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $36.10 billion.
Ford is expanding its production capacity in many emerging markets to facilitate supply and reduce costs. The company is also turning toward capital deployment to boost shareholder value. Further, its accelerated product transformation plan, ‘One Ford’, is positively impacting results.
However, following Britain’s vote to exit the European Union, Ford expects the projected softness in the European industry and weakness in the sterling to negatively affect its operations in the long term. The company is also facing weakness in South America.
Ford’s financials may be adversely affected if it pays the $75 million compensation sought by Indonesian dealers for losses they will incur due to its exit from the nation.
Despite these headwinds, Ford hopes to continue with its robust financial performance this year. Management expects 2016 pre-tax profit, earnings per share, Automotive revenue and Automotive operating margin to be equal to or higher than 2015 levels. Also, North America, Europe, Middle East & Africa, and the Asia Pacific segments are expected to be profitable in 2016.
Some better-ranked automobile stocks include Spartan Motors Inc. , Visteon Corporation (VC - Free Report) and Unique Fabricating, Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can Ford's Fundamental Strength Offset Regional Headwinds?
On Jun 28, 2016, we issued an updated research report on Ford Motor Company (F - Free Report) . The company currently carries a Zacks Rank #3 (Hold).
Ford is witnessing strong sales volumes in all major markets. This has been boosting its revenues. The company posted adjusted earnings per share of 68 cents in the first quarter of 2016, 39 cents higher than the figure recorded in first-quarter 2015 (excluding special items). Moreover, earnings per share surpassed the Zacks Consensus Estimate of 43 cents.
Revenues in the reported quarter increased to $37.7 billion from $33.9 billion in the year-ago quarter. Moreover, the figure outpaced the Zacks Consensus Estimate of $36.10 billion.
Ford is expanding its production capacity in many emerging markets to facilitate supply and reduce costs. The company is also turning toward capital deployment to boost shareholder value. Further, its accelerated product transformation plan, ‘One Ford’, is positively impacting results.
However, following Britain’s vote to exit the European Union, Ford expects the projected softness in the European industry and weakness in the sterling to negatively affect its operations in the long term. The company is also facing weakness in South America.
Ford’s financials may be adversely affected if it pays the $75 million compensation sought by Indonesian dealers for losses they will incur due to its exit from the nation.
Despite these headwinds, Ford hopes to continue with its robust financial performance this year. Management expects 2016 pre-tax profit, earnings per share, Automotive revenue and Automotive operating margin to be equal to or higher than 2015 levels. Also, North America, Europe, Middle East & Africa, and the Asia Pacific segments are expected to be profitable in 2016.
FORD MOTOR CO Price and Consensus
FORD MOTOR CO Price and Consensus | FORD MOTOR CO Quote
Some better-ranked automobile stocks include Spartan Motors Inc. , Visteon Corporation (VC - Free Report) and Unique Fabricating, Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>