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June 2017 Update: Reviewing Fiat Chrysler’s Recent Financials

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Fiat Chrysler Automobiles

Fiat Chrysler Automobiles (FCAU) has a reputation of having the lowest profit margins in its peer group. The profit margins of other mainstream automakers (IYK) such as General Motors (GM), Ford Motor Company (F), and Toyota Motor (TM) are much higher than FCAU’s. 

Fiat Chrysler’s high debt position has also been worrisome for its investors. However, the company’s financial performance has improved in the last few quarters. Let’s take a look.

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Recent improvements

In 1Q17, Fiat Chrysler’s adjusted EPS (earnings per share) stood at 0.43 euros, or $0.47, reflecting a YoY (year-over-year) rise of ~26%. The company reported a 4.3% YoY rise in its total revenue in the same quarter.

Similarly, FCAU’s 1Q17 adjusted EBIT (earnings before interest and tax) was 1.5 billion euros, or $1.7 billion. The company’s EBIT margin also expanded to 5.5% in 1Q17, higher than its level of 5.2% in 1Q16.

With this, Fait Chrysler came close to its 2018 targets, which could be the primary reason for investors’ positively reacting to its 1Q17 earnings. Notably, on the day of the company’s first-quarter earnings release, its stock rose 10.5%.

In the next article, we’ll take a look at some key technical support and resistance levels for Fiat Chrysler stock.

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