Ford (F) Stock Falls After October Vehicle Sales Decline

NEW YORK (TheStreet) -- Shares of Ford Motor (F) were falling 0.9% to $13.96 Monday after the automaker reported a drop in vehicle sales in the month of October.

Ford reported a year over year drop of 2% in new vehicle sales in October, with a total of 188,654 vehicles sold in the month. The company said the sales drop was expected, saying it was "tied to the plant changeover" for the introduction of the aluminum 2015 F-150 truck.

Despite the overall sales drop, government and commercial sales grew 4% and 18%, respectively, Ford said.

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Sales of Ford-branded vehicles fell 2.7% to 179,771 in the month, while Lincoln vehicle sales grew 24.6% to 8,883, a record for the month of October.

Watch the video below for a closer look at October auto sales:

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

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • FORD MOTOR CO's earnings per share declined by 32.3% 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 36.0% in earnings ($1.12 versus $1.75).
  • The share price of FORD MOTOR CO has not done very well: it is down 19.56% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • 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 34.4% when compared to the same quarter one year ago, falling from $1,272.00 million to $835.00 million.
  • You can view the full analysis from the report here: F Ratings Report

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