NEW YORK (TheStreet) -- Shares of Ford Motor Co. (F - Get Report) are up 1.94% to $15.76 following the company's announcement that its board approved a repurchase program for up to approximately 116 million shares of Ford common stock, equivalent to about $1.8 billion, consistent with its capital strategy to take anti-dilutive actions to enhance shareholder returns.
Share repurchases will offset the dilutive effect of potential conversions of Ford's 4.25% Senior Convertible Notes due Nov. 15, 2016, and share-based employee compensation granted in 2014.
Combined share repurchases will reduce diluted shares by about 3%.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- FORD MOTOR CO's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FORD MOTOR CO increased its bottom line by earning $1.75 versus $1.42 in the prior year. For the next year, the market is expecting a contraction of 23.4% in earnings ($1.34 versus $1.75).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 38.6% when compared to the same quarter one year ago, falling from $1,611.00 million to $989.00 million.
- You can view the full analysis from the report here: F Ratings Report