Share price of Ford Motor Co. (F) increased 1% on Feb 18, 2014 to $15.39 after the automaker opened the 700th store for its Quick Lane Tire & Auto Center business at Grapevine Ford Lincoln in Grapevine, Texas. The Quick Lane vehicle maintenance business is one of the fastest-growing service brands in the industry, according to the company.
Under the Quick Lane business, Ford offers vehicle maintenance services including oil and filter changes, light repair such as brake fixing, and tire replacements for all vehicles. The Quick Lane stores also sell tires from 11 leading brands including The Goodyear Tire & Rubber Company (GT), Michelin and Continental AG (CTTAY) and ensures the best price.
Tire sales at Quick Lane increased 12% to 1.4 million in 2013. Revenues from the business surged to $800 million during the year. Moreover, 25% of the services were provided to vehicles by Ford’s competitors.
Acting on the success of the business in the U.S., Ford plans to offer Quick Lane service globally. The automaker intends to open 100 stores outside the U.S..
Ford posted earnings per share of 31 cents in the fourth quarter of 2013, in line with the fourth quarter of 2012 earnings (all excluding special items). With this, the company surpassed the Zacks Consensus Estimate of 28 cents.
Revenues in the quarter grew 3.6% to $37.6 billion, exceeding the Zacks Consensus Estimate of $35.47 billion. The improvement was attributable to increased wholesale volumes in the automotive business.
Currently, Ford carries a Zacks Rank #3 (Hold). A better-ranked automobile stock worth considering is Tesla Motors, Inc. (TSLA), which sports a Zacks Rank #1 (Strong Buy).
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