Ford (F) Stock Up on Rise in April 2015 Sales

NEW YORK (TheStreet) -- Shares of Ford Motor (F) are higher by 0.47% to $15.88 in mid-morning trading on Friday, after the automotive maker said its sales for April 2015 grew by 5% when compared to the same month in 2014. Ford said this was its best April sales performance since 2006.

The company said strong consumer demand for its new products drove the April sales increase, with 222,498 vehicles sold.

"Customer demand for our new vehicles continues to be strong, with the F-Series, Mustang, Transit van lineup and Edge driving retail gains in April. Our SUVs are in particularly high demand, and the new F-150 is off to an outstanding start," Mark LaNeve, Ford VP of U.S. Marketing, Sales and Service, said in a statement announcing the sales results.

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 a number of 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. Among the primary strengths of the company is its generally strong cash flow from operations. We feel these 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:

  • Net operating cash flow has slightly increased to $2,413.00 million or 8.69% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -32.13%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.3%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • FORD MOTOR CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over 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 ($1.59 versus $0.78).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Automobiles industry average. The net income has decreased by 6.6% when compared to the same quarter one year ago, dropping from $989.00 million to $924.00 million.
  • The gross profit margin for FORD MOTOR CO is rather low; currently it is at 18.58%. Regardless of F's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.72% trails the industry average.
  • You can view the full analysis from the report here: F Ratings Report

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