Skip to main content

NEW YORK (TheStreet) -- Ford Motor Co. (F) - Get Free Report  shares are gaining 1.59% to $14.97 today on positive remarks from UBS, reversing yesterday's losses due to mixed third quarter earnings and weak fourth quarter forecasts. 

UBS continues to be bullish since Ford is "well positioned for the year ahead," according to Barron'

Analysts believe that the company will return cash to shareholders given that it made $5.2 billion in cash so far this year. As a result, the firm reiterated its "buy" rating on the stock. 

Before the market opened yesterday, Ford released its third quarter fiscal 2015 earnings results. Profit of 45 cents a share came in short of analysts' forecasts of 47 cents a share.

Revenue of $38.1 billion though, topped analysts' forecasts of $35.07 billion.

In addition, shares were being pressured on Wednesday due to CFO Bob Shanks' statement. He expects that fourth quarter profitability will be hurt by higher season costs and potential payouts related to a new labor deal, according to the Wall Street Journal.

Based in Dearborn, MI, Ford Motor manufactures and distributes automobiles worldwide.

Separately, 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 multiple strengths, 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 increase in net income, good cash flow from operations, solid stock price performance, growth in earnings per share and notable return on equity. 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 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 43.8% when compared to the same quarter one year prior, rising from $1,311.00 million to $1,885.00 million.
  • Net operating cash flow has slightly increased to $5,210.00 million or 9.68% when compared to the same quarter last year. In addition, FORD MOTOR CO has also modestly surpassed the industry average cash flow growth rate of 8.66%.
  • 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • FORD MOTOR CO has improved earnings per share by 46.9% 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 ($1.69 versus $0.78).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.5%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: F