Why Fiat Chrysler Automobiles NV (FCAU) Stock Is Slipping Today

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Fiat Chrysler Automobiles NV (NYSE:FCAU) stock was down following the release of its earnings report for the second quarter of 2016.

Fiat Chrysler, FCAUFiat Chrysler reported earnings per share of €0.45. This is up from the €0.24 that it reported during the same time last year. However, it failed to meet the €0.50 that Wall Street was expecting for the quarter.

Fiat Chrysler’s revenue for the second quarter of 2016 came in at €27.89 billion. This is a drop the from €28.54 billion that it reported in the second quarter of 2015. It also didn’t reach the €31.77 billion that analysts were looking for from the company.

FCAU noted that it suffered a €414 million hit during the second quarter of 2016 due to charges connected to the expanded recall of Takata airbags that was announced in May 2016. It also noted that shipments were down from the second quarter of 2015 due to lowered compact and mid-size sedan volumes.

Fiat Chrysler increased its outlook for the full year of 2016 to include revenue of €112 billion. This is up from its previous outlook of €110 billion for the year. However, Wall Street is currently expecting the company to report revenue of €124.23 billion in 2016. It also noted that net industrial debt will remain at €5 billion.

Fiat Chrysler also recently reported results from an investigation into its sales numbers from previous years. The company found that United States sales had been inflated for several months. It now says its streak of monthly sale increases only lasted for 40 months and ended in September of 2013. Previous reports has its streak lasting for 75 months into June of this year, reports The Wall Street Journal.

FCAU shares were down 3% as of Noon Wednesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/fiat-chrysler-fcau/.

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