Fiat Chrysler stock
In the week ending September 14, Fiat Chrysler stock (FCAU) rose 5.7% and closed at $17.50. In the previous week, the stock registered 3.2% losses. After reporting mixed second-quarter results on July 25, Fiat Chrysler fell ~12% for the session. During the second-quarter earnings event, the company revised its 2018 outlook downward just like its peers (IYK) General Motors (GM) and Ford (F). Fiat Chrysler expects its 2018 adjusted EBIT to be 7.5 billion–8.0 billion euros—down from the original guidance of 8.7 billion euros.
In the second quarter, Fiat Chrysler’s adjusted earnings fell ~10% YoY (year-over-year) to 0.62 euros or ~$0.72 per share. However, the company’s earnings missed Wall Street analysts’ estimates of 0.85 euros.
On September 17, Fiat Chrysler stock was trading at $17.45. The stock continued to recover after touching its nine-month low of $15.33 in August. An immediate support level could be seen near $16.60. On the upside, an immediate horizontal resistance level lies at $17.60, followed by a key resistance level near $18.80.
Fiat Chrysler’s August US sales rose 10% YoY (year-over-year) to 193,718 units. While the company’s US retail sales rose 17% YoY, its fleet sales fell ~19% YoY. Retail sales yield higher profit margins compared to fleet sales. As a result, the sharp rise in US retail segment sales should help Fiat Chrysler improve its profitability in the third quarter. August was the fifth consecutive month that Fiat Chrysler’s US sales rose after declining for the previous 18 months in a row.
The company’s consistent US monthly sales gains could be one of the reasons why the stock has risen 10.7% in the past month as of September 17.
Fiat Chrysler owned Ferrari (RACE) until January 2016. Fiat Chrysler officially spun-off Ferrari as a separate publically listed company.
Next, we’ll discuss how Tesla stock traded in the second week of September.