What's In The Cards For Fiat Chrysler (FCAU) In Q3 Earnings?

Fiat Chrysler Automobiles N.V. (NYSE:FCAU) is set to report third-quarter 2017 results before the opening bell on Oct 24. The company missed estimates once and beat thrice in the trailing four quarters, with an average positive earnings surprise of 23.6%.

Fiat Chrysler’s shares have rallied 63.8% in the last three months, substantially outperforming the 16.4% growth of the industry it belongs to.
Let’s see how things are shaping up for this announcement.

Factors Influencing this Quarter

For 2017, Fiat Chrysler projects revenues in the range of €115-€120 billion ($123.4-$128.8 billion) compared with the €111 billion earned in 2016. The company expects adjusted net profit of more than €3 billion ($3.2 billion), up from €2.52 billion recorded in 2016.

Also, Environmental Protection Agency (EPA) accused Fiat Chrysler of using software to manipulate emissions in vehicles that would have otherwise violated the Clean Air Act. This may result in a large number of recalls.

Earnings Whispers

Our proven model does not conclusively show an earnings beat for that Fiat Chrysler will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Zacks ESP: Earnings ESP for Fiat Chrysler is 0.00% as the both the Most Accurate estimate and the Zacks Consensus Estimate are currently pegged at 50 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Fiat Chrysler carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's 0.00% ESP makes surprise prediction difficult.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few other stocks in the auto industry you may consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Autoliv, Inc. (NYSE:ALV) has an earnings ESP of +1.99% and carries a Zacks Rank #2 (Buy). The company will report third-quarter 2017 financial results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.

Horizon Global Corporation (NYSE:HZN) has an earnings ESP of +5.82% and carries a Zacks Rank #3. The company’s third-quarter 2017 financial results are expected to release on Oct 31.

Magna International Inc. (NYSE:MGA) has an earnings ESP of +1.91% and carries a Zacks Rank #2. The company’s third-quarter 2017 financial results are expected to release on Nov 9.

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>