Ford (F) Stock Climbs in After-Hours Trading on Tentative UAW Labor Agreement

Ford (F) shares are rising in after-hours trading after the United Auto Workers union said that it came to a preliminary labor agreement with the company.
By Tony Owusu ,

NEW YORK (TheStreet) -- Shares of Ford Motor Co.  (F) - Get Report are up 0.23% to $14.55 in after-hours trading on Friday after the company came to a tentative labor agreement with the United Auto Workers union.

The UAW said that union leaders will meet in Detroit on Monday to review the deal for final approval.

"I know this has been a very long and stressful process, but I thank each of the 52,000 hardworking men and women of UAW-Ford for their patience, understanding and solidarity," said UAW VP Jimmy Settles in a statement.

Details of the deal were not made public today, but the agreement could be similar to the four-year deal the union struck with GM (GM).

UAW members have bristled at accepting any deal that maintains the two-tier wage structure that kept workers hired after 2007 from reaching the same base wage scale as more senior workers.

TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate FORD MOTOR CO (F) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 128.6% when compared to the same quarter one year prior, rising from $835.00 million to $1,909.00 million.
  • Net operating cash flow has increased to $6,455.00 million or 20.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.45%.
  • FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORD MOTOR CO reported lower earnings of $0.78 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $0.78).
  • You can view the full analysis from the report here: F

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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