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Fiat Chrysler’s Q1 Earnings: Analysts’ Expectations

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Apr. 30 2019, Published 8:02 a.m. ET

Fiat Chrysler’s first-quarter earnings

After trading with a negative to neutral trend in the past few months, Fiat Chrysler (FCAU) turned positive in April. Investors’ high expectations from the company’s first-quarter earnings report could have supported the recent optimism in the stock. We’ll discuss analysts’ expectations for Fiat Chrysler’s first-quarter earnings.

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Earnings in the last quarter

In the fourth quarter of 2018, Fiat Chrysler reported a solid adjusted EPS (earnings per share) of 1.04 euros—more than double its adjusted EPS of 0.51 euros in the first quarter of 2017. The EPS was also better than analysts’ estimates of 0.90 euros.

On the day of Fiat Chrysler’s fourth-quarter earnings announcement, the stock traded on a negative note and closed with a massive 12.2% fall for the session. Despite the company’s better-than-expected earnings, its dismal 2019 outlook drove the pessimism.

Analysts’ estimates

Analysts expect Fiat Chrysler’s first-quarter adjusted EPS to be ~0.46 euros. The estimated EPS would be 29.2% lower compared to 0.65 euros in the first quarter of 2018.

In the first quarter, US truck sales (IYK) remained stable, while car sales continued to decline. According to data compiled by MarkLines, US truck and SUV sales rose 0.6%, while small passenger car sales fell 8.7% during the quarter. Fiat Chrysler reported a 7% decline in its highly profitable Jeep brand sales in the quarter ending in March 2019, which could hurt its earnings.

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