Fiat Chrysler Automobiles N.V. (FCAU): Good Earnings Numbers Are in the Air

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Fiat Chrysler Automobiles N.V. (FCAU) tumbled -2.06% to $8.09 and the amount of shares that traded hands from sellers to buyers was 8,009,636 shares. The company declared its Q116 earnings before market opening on 26 April 2016. FCAU stock traded between $7.86 and $8.06 on the day of the earnings release. EPS for the recently concluded quarter came in at $EUR0.34 when sales were EUR26.6B. Analysts had been looking for $EUR0.21 a share with EUR27.19B in sales.

Historical Earnings Data: Fiat Chrysler Automobiles N.V. topped earnings estimates in 2  of the trailing twelve fiscal quarters (3 financial years), and has a negative trend with an average miss rate of 28%. FCAU had posted earnings per share of $0.29 for the June 2015 quarter, falling short of the mean forecast of $0.31. Revenues reached 29.23B in the quarter, which was greater than the consensus 27.49B projection. However, in the December 2015 quarter it recorded a net 29.41B revenue with EPS of $0.16. Wall Street had projected 29.5B and $0.33, respectively. For comparison, there was a revenue of 27.47B and earnings of -$0.2 in the September 2015 quarter.

Current Quarter Outlook: The focus will now turn to the outlook or guidance for the next reporting quarter (June 2016). Analysts, on average, predict Fiat Chrysler Automobiles N.V. will report $0.42 in earnings per share (EPS) on revenue of 29.27B. The earnings-per-share consensus range is $0.4-$0.44 on sales between 28.06B and 30.66B.

Analyst Sentiment: The confidence in the future of Fiat Chrysler Automobiles N.V. (FCAU) is getting weaker by the somewhat bearish sentiment (3.00 on a 5-point scale) that analysts have issued concerning it. Analysts on the average rate the stock as Overweight. Research analysts at BofA/Merrill have been covering FCAU stock so their up-to-date recommendation is worth a look. BofA/Merrill published a research note on April 29, 2016, lowering the stock from Underperform to Neutral. Societe Generale also changed its view on January 08, 2016, downgrading shares of Fiat Chrysler Automobiles N.V. to Hold from Sell.

Growth Potential: The stock is trading up 39.97% versus 1-year low of $5.78 and stands -51.32% down from its peak of $10.9. The consensus price target of $9.16 means that the market expects Company shares to rise by 13.23 in the near future. The sell-side target prices range from $5.72 to $17.97. In the last month the stock has moved in price 0.37% with a one year change of -45.15%. The last trading session volume compares with the 5.87M average and market worth around $10.44B.

 

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