Can Fiat Chrysler’s 1Q16 Earnings Meet Analyst Estimates?
Fiat Chrysler's 1Q16 Results Are Coming: Read This and Sit Tight
Trend in FCAU’s earnings
In 4Q15, Fiat Chrysler (FCAU) posted strong adjusted EPS (earnings per share) of 0.74 euros, or about $0.81, with an impressive 111% positive growth YoY (year-over-year). The company’s overall 2015 adjusted EPS stood at 1.31 euros, or about $1.46, beating analyst expectations. But can the company sustain this trend in 2016?
Fiat Chrysler’s 1Q16 earnings estimates
Analyst estimates suggest that Fiat Chrysler is going to witness a significant increase—by more than 200%—in its 1Q16 earnings. Analysts also estimate that the company’s 1Q16 adjusted EPS will be around 0.18 euros, or about $0.21, as compared to 0.5 euros, or about $0.06, in 1Q15. High expectations from the company’s three key brands—Jeep, Dodge, and Ram—may explain why analysts anticipate such solid earnings growth.
Notably, over the past year, demand for pickups and utility vehicles has risen sharply in the US. But according to estimates, FCAU’s fiscal 2016 earnings won’t show further growth, and its annual adjusted EPS is likely to remain unchanged at 1.31 euros, or about $1.46.
Peer comparisons
Among FCAU’s peers, analysts estimate that General Motors (GM) and Ford (F) will also to post YoY increases in their 1Q16 earnings. General Motors is set to release its 1Q16 earnings on April 21, 2016. The company is expected to post an adjusted EPS of ~$1, which would reflect a 16% YoY growth. By comparison, Ford’s 1Q16 earnings are estimated to be $0.47—more than double what it was in the previous quarter.
We should note that Fiat Chrysler, GM, and Ford draw the majority of their revenues from the US region. Among other mainstream automakers (VCR), Japanese automaker Toyota (TM) also has a large exposure to the US auto market.
Continue to the next part for a look at what analysts are recommending for Fiat Chrysler’s stock ahead of its 1Q16 earnings release.
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