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Fiat Chrysler's (FCAU) Q3 Earnings Beat Estimates, Guidance Raised

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Fiat Chrysler Automobiles N.V. is an international automotive company. It designs, manufactures, distributes and sells vehicles, components and production systems. The company owns the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands. Fiat Chrysler is benefiting from rising sales in the U.S. and Europe. The company intends to expand vehicle sales in key markets throughout the world. The company also focuses on maintaining cost efficiency.

However, the company is undergoing a challenging phase owing to product recalls. Frequent product recalls increase the company’s cost burden and adversely affect results.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

Fiat Chrysler’s earnings increased to €0.474 (53 cents) per share in the third quarter of 2016, up about 238.6% from the year-ago quarter, beating the Zacks Consensus Estimate of 34 cents.

Revenues

Fiat Chrysler reported revenues of €26.8 billion ($29.9 billion), in line with the year ago quarter.
 

FIAT CHRYSLER Price and EPS Surprise

 

FIAT CHRYSLER Price and EPS Surprise | FIAT CHRYSLER Quote

Key Stats/Developments to Note

Fiat Chrysler raised its full-year 2016 guidance due to strong year-to-date operating performance. The company expects revenue to be over €112 billion ($125 billion). The company raised its forecast for adjusted net profit to over €2.3 billion ($2.6 billion) from its previous expectation of more than €2 billion ($2.2 billion).

Zacks Rank

Currently, Fiat Chrysler has a Zacks Rank #5 (Strong Sell), but that could change following its earnings report which has just released.

Market Reaction

Fiat Chrysler’s shares have been falling in pre-market trading following the release. Clearly, the initial reaction to the report is negative.

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