What Do Analysts Expect from Fiat Chrysler’s 4Q17 Earnings?


Jan. 18 2018, Published 9:06 a.m. ET

Fiat Chrysler’s 4Q17 earnings

In the previous article of this series, we looked at how Fiat Chrysler Automobiles (FCAU) stock has outperformed its peers and the broader market (SPY) (SPX-INDEX) in 2018 so far. Investors’ high expectations for the company’s 4Q17 earnings report could be one of the primary reasons for its outperformance on Wall Street.

In this article, we’ll explore analysts’ expectations for FCAU’s 4Q17 earnings. First, let’s do a brief recap of its most recent earnings.

Article continues below advertisement

FCAU’s 3Q17 earnings recap

In 3Q17, Fiat Chrysler reported solid adjusted EPS (earnings per share) of 0.59 euros, or ~$0.70, a rise of ~25% on a YoY (year-over-year) basis. Its EPS were also higher than analysts’ consensus estimate of 0.51 euros, or ~$0.60, for 3Q17.

On the day of its third-quarter earnings announcement, the company’s stock rallied and closed with a rise of ~5.4% for the session. During the quarter, FCAU’s global revenue fell on a YoY basis. However, the company’s expanded profit margins and higher net profit may have been driving some of the optimism surrounding the stock.

Analysts’ estimates for 4Q17

Analysts expect Fiat Chrysler’s 4Q17 adjusted EPS to be ~0.61 euros, or ~$0.75, compared to 0.27 euros, or ~$0.33, in 4Q16.

US truck sales continued to rise in 2017, a trend that could help Fiat Chrysler post strong fourth-quarter earnings. Legacy automakers (IYK), including FCAU, General Motors (GM), Ford Motor Company (F), and Toyota Motor (TM), have also benefited from stronger demand for trucks in the last year. In addition, Fiat Chrysler aggressively cut its US fleet sales to daily rental companies last year to focus on highly profitable retail sales, which are expected to help it post expanded profit margins.

Continue to the next article to find out what analysts are expecting for Fiat Chrysler’s 4Q17 revenue.


More From Market Realist