FCAU: Bullish Analysts, Revenues in Focus before 1Q17 Earnings

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Part 2
FCAU: Bullish Analysts, Revenues in Focus before 1Q17 Earnings PART 2 OF 8

Analysts’ Provide Estimates for Fiat Chrysler’s 1Q17 Earnings

Fiat Chrysler’s 1Q17 earnings

Previously in this series, we looked at how Fiat Chrysler Automobiles (FCAU) stock has underperformed its peers and the broader market in April so far. The company’s lower 1Q17 US sales could have hurt its stock in 1Q17. 

In this part, we’ll see what analysts are estimating for FCAU’s 1Q17 earnings. First, let’s see a brief recap of its most recent earnings.

Analysts&#8217; Provide Estimates for Fiat Chrysler&#8217;s 1Q17 Earnings

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Existing earnings trend

In 4Q16, FCAU reported strong adjusted EPS (earnings per share) of 0.27 euros, or $0.29, which was about 68.0% higher on a YoY (year-over-year) basis. However, its 4Q16 EPS missed analysts’ estimates by a large margin.

On the day of its fourth quarter earnings release, FCAU stock rose 1.3%. FCAU reported stagnant revenues and falling North American shipments for the quarter. However, its rising profitability and improving debt could be two primary reasons that investors remained optimistic.

Analysts’ estimates for 1Q17

Analysts estimate Fiat Chrysler’s 1Q17 adjusted EPS to be ~0.42 euros, or ~$0.45, compared to 0.31 euros, or ~$0.35, in 1Q16.

During 1Q17, Fiat Chrysler’s US sales (IYK) of Jeep and Dodge brand vehicles fell 11% and 5%, respectively, on a YoY basis. These lower sales of the company’s key heavyweight vehicle brands could hurt its 1Q17 earnings.

Notably, the US sales of heavyweight vehicles have risen in the last couple of years. Mainstream automakers such as FCAU, General Motors (GM), Ford (F), and Toyota (TM) benefited from this increased demand in 2016.

Continue to the next part to learn what analysts are recommending for Fiat Chrysler stock ahead of its 1Q17 earnings.


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