Morgan Stanley (NYSE:MS) and internal management of Ford (NYSE:F) analyzing its earnings


Ford Motor Company (NYSE:F) reported Q3 earnings for this year this Friday morning and its EPS amounted to $0.24 per share which crossed its analyst estimate of $0.02 per share. The revenue of Ford (NYSE:F) for its third quarter was $32.8 billion which was expected to be $33.66 billion. Morgan Stanley (NYSE:MS) analyzed the position of Ford (NYSE:F) with Adam Jones stating that Ford’s F-150 is going good, according to the management of Ford.

Jones states that there is no reason to buy or sell Ford’s (NYSE:F) stock with analysts at Morgan Stanley (NYSE:MS) currently giving Ford an under-weight rating for its shares. The chief executive and president, Mark Fields referred to the year as a pit stop for the company due to the growth the company is aiming at in the next year. In a conference call with Ford’s (NYSE:F) investors on Friday, he stated that the quarter was a very challenging one.

Ford (NYSE:F) predicted its earnings to be somewhere around $6 billion considering pretax profit in 2014. However, it expected to go way above $8.5 billion in the next year. The F-150 was one of the bestselling vehicles in the U.S. however, Ford (NYSE:F) redesigned it in order to save some weight as well as to become better in its fuel economy. The new car is soon to arrive at car dealerships this December.

The senior analyst of Kelley Blue Book, Eric Ibara stated that it is difficult to overstate how important the F-150 is for Ford. The company depends on its truck to increase its sales therefore even with the amount of awards the company is generating, Ford (NYSE:F) decided on a redesign. The base of the F-150, North America, reported a lower 6% in Ford’s (NYSE:F) third quarter with another decrease in sales to dealers by 8%.

The operating cash flow of Ford (NYSE:F) reported a negative $700 million for its quarter and the executive vice president and CFO of Ford (NYSE:F), Bob Shanks stated that it is obvious as to how profitable the F-150 is for the company. He continued to say that Ford expects it to contribute immensely to its bottom line. The chief executive Mr. Fields stated that his plans for the vehicle were doing pretty well with mass production increasing in the plant.

Two other factors apart from the F-150 affected the quarterly earnings of Ford (NYSE:F). These include pressures on the company due to its South American market and the issue on currency exchange the nation is facing. Even though these factors are being faced by other car manufacturers as well, Ford (NYSE:F) is being hurt strongly by them.

Ford (NYSE:F) reported over and above $600 million charges due to its warranty cost in the North American region for its third quarter. In September, the company recalled nearly 745,000 in sedans as well as sport utility vehicles in America due to airbag problems.  Ford’s (NYSE:F) shares closed this Friday at $13.78, which were down by 4.3%.