Ford reported fourth-quarter adjusted earnings per share in line with revised estimates, although core operating results were a bit weaker than some expected. Ford continues to struggle amid a volatile global market, exacerbated by some perceived critical missteps that may partially abate later this year.
Shareholders receive an outstanding 7.08% dividend, which could be lowered this year. JPMorgan’s Buy rating comes with a $12 price target. The consensus price target is much lower at $9.32. Shares closed most recently at $8.42.
If any stock has taken a beating over the past two years, it has been this former industrial powerhouse. General Electric Co. (NYSE: GE) businesses are organized broadly under seven segments: Power, Renewable Energy, Energy Connections, Oil & Gas, Aviation, Healthcare, Transportation and GE Capital. The company’s products and services include power generation equipment, aircraft engines, locomotives, medical equipment, compressors and others. Over half of the business is tied to service and aftermarket support.
Last year the venerable American industrial giant got the ultimate humiliation of being removed from the Dow Jones industrial average after a stay of over 100 years.
The massive restructuring and debt reduction plans that have been announced come after years of acquisitions and changes in the core business at GE, and in some cases what many on Wall Street thought were ill-advised moves by the former CEO Jeff Immelt. The company’s once dependable dividend has been chopped to $0.04 a share and may be eliminated altogether at some point.
Investors in GE receive just a 0.44% dividend. The $15 Citigroup price target on the Buy-rated shares is higher than the $11.61 consensus target. The shares closed at $9.58.
Kraft Heinz Co. (NYSE: KHC) was formed almost three years ago via the merger of H.J. Heinz and Kraft Foods. The company is the leading global food company, with $29 billion of annual revenues generated by well-known brands such as Kraft, Heinz, Oscar Mayer and Maxwell House.
The company is the third largest food and beverage manufacturer in North America, and it derives 76% of revenues from that market and 24% from International. The company’s many brands also include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.
The company not only cut the dividend but also missed earnings on both the top and bottom lines, and it took a massive $15.4 billion write-down on goodwill primarily related to its Kraft and Oscar Mayer brands. Some on Wall Street think the company may be taken private. Warren Buffett, who owns a controlling stake, was reported to be holding all his stock.
Kraft Heinz shareholders are paid a 4.87% dividend. Jefferies has a Buy rating and a $40 price target. The consensus target price is $38.52, and shares were last seen at $32.10.
The one key ingredient for investors considering buying shares of any of these companies is to count on holding them for a while. Wall Street is not real good at forgiving and forgetting, so investors should be prepared to be patient.