Fiat Chrysler (FCAU) Q1 Earnings In-Line, Rise Y/Y April 29, 2015

Fiat Chrysler Automobiles N.V. (FCAU) 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 will benefit 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, Fiat Chrysler is going through a challenging period due to product recalls and warranty obligations. Product recalls increase the company’s cost burden and also harm its reputation. Issues of product safety and reliability are called to the fore. In addition, the automotive industry is highly competitive and cyclical.

Estimate Trend & Surprise History

Investors should note that the first-quarter earnings estimates for Fiat Chrysler have been stationary over the past week and month. The Zacks Consensus Estimate has remained static at 6 cents over these periods.

Fiat Chrysler recorded a positive beat of 14.71% in the last quarter.

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

Earnings

Fiat Chrysler’s earnings increased significantly to 6 cents (€0.052) per share in the first quarter of 2015 from loss of €0.155 per share in the year ago quarter. Earnings were in line with the Zacks Consensus Estimate of 6 cents.

Revenues

Fiat Chrysler reported revenues of $28.8 billion (€26.4 billion), up 19% year over year. The year-over-year improvement was due to better results from NAFTA, EMEA and Components segment partially offset decline in revenues from LATAM and Maserati segment.

Key Stats/Developments to Note

For 2015, Fiat Chrysler expects revenues to $118 billion (€108 billion) with global shipments in the range of 4.8 to 5 million units.

Zacks Rank

Currently, Fiat Chrysler has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

Fiat Chrysler’s shares increased 0.49% to $16.35 following the release. It would be interesting to see how the market reacts to the results during the trading session today.