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Analyzing Fiat Chrysler Stock before Its Q1 Earnings

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Fiat Chrysler Automobiles

Fiat Chrysler Automobiles (FCAU) is scheduled to announce its first-quarter earnings on May 3. Fiat Chrysler was formed after the Italian automaker Fiat acquired 100% stakes in American auto company Chrysler in early 2014. Before we find out what analysts expect from the company’s first-quarter earnings, let’s take a look at its recent stock performance.

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Minor gains

In the first quarter, Fiat Chrysler underperformed its peers and the broader market. Fiat Chrysler rose 2.7%—compared to 13.1% gains in the S&P 500 Index. General Motors (GM), Ford Motor Company (F), and Ferrari (RACE) rose ~10.9%, 14.8%, and 34.6%, respectively, in the quarter ending in March.

As of April 29, Fiat Chrysler stock has risen ~4.5% in April—compared to a 3.8% rise seen in the S&P 500 benchmark. General Motors, Ford, Toyota (TM), and Ferrari shares have risen ~78%, 17.5%, 4.9%, and 1.3%, respectively, on a month-to-date basis.

Fiat Chrysler yielded a 96.4% positive return in 2017 to become the top performing auto stock for the year. However, the stock fell in 2018 and ended the year with 18.9% losses. The broader market sell-off in the fourth quarter of 2018 took a massive toll on Fiat Chrysler. The company lost nearly 17.4% during the quarter.

Ferrari used to be a part of Fiat Chrysler Group until late 2015 when it was spun off as a separate entity.

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