|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||10.51 - 10.72|
|52-week range||10.14 - 13.48|
|PE ratio (TTM)||5.47|
|Earnings date||25 Jul 2018|
|Forward dividend & yield||0.60 (5.36%)|
|1y target est||12.27|
Previously, we looked at Fiat Chrysler’s (FCAU) stock performance in Q2. Investors’ high expectations for the company’s second-quarter results may have helped its stock. In this part, we’ll explore analysts’ estimates for its Q2 2018 earnings.
Italian-American auto giant Fiat Chrysler (FCAU) is slated to announce its Q2 2018 earnings on July 25. Before we review analysts’ estimates for its Q2 2018 earnings, let’s look at its stock performance in July so far.
With second-quarter earnings season in full swing, we're gearing up for reports from General Motors (GM), Ford Motor (F), and Tesla (TSLA). Yet JPMorgan's Ryan Brinkman argues that only the first two are worth buying ahead of the results. Brinkman reiterated an Outperform rating on both GM and Ford, although he thinks only the former will beat consensus estimates.
Federal safety investigators are looking into complaints that engines on some Ford Escape vehicles can overheat and suddenly stall while being driven. The U.S. National Highway Traffic Safety Administration says in documents posted on its website Friday that it has 40 complaints from consumers about stalling, including two alleging that the engines caught fire. Ford said in a statement Friday that it is cooperating with the investigation as it always does.
In Q1 2018, Ford’s (F) automotive EBIT fell 20% YoY (year-over-year) to $1.7 billion, and its EBIT margins contracted YoY to 4.4% from 6.0%. Ford’s profits worsened in many of its key segments due to higher steel and aluminum prices, higher structural costs, and currency headwinds driven by the British pound, Thai baht, Canadian dollar, and Argentinian peso.
The automobile sector is known to be highly capital-intensive due to huge fixed and raw material costs in the auto manufacturing business. That’s one of the key reasons that major automakers (VCR) General Motors (GM), Ford Motor (F), Toyota Motor (TM), and Fiat Chrysler Automobiles (FCAU) extensively utilize debt.
In Q1 2018, Ford’s (F) revenue rose 7% YoY (year-over-year) to $39 billion, beating analysts’ estimate of $37.2 billion. While Ford’s US sales fell 2% YoY in the quarter, lower tax boosted its revenue. Like Ford, legacy automaker (XLY) peers General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) generate a large portion of their revenue from North America.
Domestic automakers will suffer equally if tariffs are imposed on car imports, as a number of U.S. carmakers have their production units offshore.
A strong economy and an upbeat consumers' sentiment should have some positive influence on Ford's (F) soon-to-be-released results.
Of the 21 analysts covering Ford (F) stock, most (76%) recommend “hold,” 19% recommend “buy,” and 5% recommend “sell.” Their 12-month target price of $12.28 for Ford implies a ~13% upside to its market price of $10.87.
US auto giant General Motors (GM) is set to release its Q2 2018 earnings on July 25. According to 2017 US auto sales volumes, GM had the largest market share in its home market, surpassing Ford Motor (F), Toyota (TM), and Fiat Chrysler Automobiles (FCAU).
According to a CNBC report, analyst Rajvindra Gill at Needham expects the Model 3 cancellation rate to have doubled in less than a year. Before Tesla reached its Model 3 production milestone of 5,000 units per week at the end of the second quarter, Morgan Stanley analyst Adam Jonas was not expecting Tesla to achieve a rate of 5,000 units per week until the first half of 2019. In fact, Tesla’s efforts to exponentially boost Model 3 production might have given confidence to Model 3 reservation holders who have already waited for many quarters to stick to their reservations a little longer.
According to the Alliance of Automobile Manufacturers, 25% tariff on imported cars and parts would raise the price of U.S. vehicles by $83 billion annually, leading to job losses.
Valuation multiples are commonly used by investors to compare auto companies. These multiples could be used to compare business entities that are similar in size or nature. Let’s see how the valuation multiples of mainstream auto companies Ford (F), Toyota (TM), General Motors (GM), and Fiat Chrysler (FCAU) are trending in July.
Ford is recalling about 550,000 cars and SUVs in North America to fix a gearshift problem that could cause the vehicles to roll away unexpectedly. The recall covers certain 2013 through 2016 Fusion sedans ...
Lakeshore, ONTARIO—Across the border from the U.S. auto capital of Detroit, a Canadian company here buys aluminum made at smelters in Quebec using bauxite from Africa or Brazil that Ford Motor Co. puts in America’s best-selling pickup, the F-150. The tightly woven production chain illustrates the U.S. dependence on aluminum from Canada that many say is unlikely to change despite recent metals tariffs the Trump administration hopes will boost the American metals sector. “The reality is there’s not enough aluminum made here,” said Eric Krepps, who runs the North American automotive business at Constellium NV, a Dutch aluminum company.
Actor Johnny Depp has settled a bitter legal dispute with his former business managers, the actor said Monday, a move that allows him to avoid a public and potentially embarrassing trial over how he has lost much of his Hollywood fortune. Mr. Depp and the Management Group, which handled his finances between 1999 and 2016, arrived at a confidential settlement over the weekend, according to a person familiar with the matter. A judge must now approve the settlement to stop a trial set to begin Aug. 15.
Co. has agreed to pay at least $299.1 million to resolve a class-action lawsuit over its use of defective Takata Corp. airbag inflaters in more than 6 million vehicles. The proposed settlement was reached after several weeks of negotiation, said Peter Prieto, the lead counsel for the plaintiffs in the case, owners and lessees of Ford vehicles that included the Takata airbag inflaters. Drivers sued Takata, Ford and other car makers over the faulty parts more three years ago.