Earnings Alerts

Stellantis NV (STLA) Earnings: High Inventory Impacts 1H Profitability

  • Adjusted Operating Income: €8.94 billion
  • Adjusted Operating Margin: 10.3%
  • Industrial Free Cash Flow: €1.78 billion
  • Net Income: €6.81 billion
  • Net Revenue: €87 billion
    • North America: €38.59 billion
    • Enlarged Europe: €31.46 billion
    • South America: €7.41 billion
    • Middle East & Africa: €5.2 billion
    • China, India & Asia Pacific: €1.24 billion
    • Maserati: €844.6 million
  • Vehicle Sales: 2.92 million
    • North America: 833,631
    • Enlarged Europe: 1.38 million
    • South America: 400,918
    • Middle East & Africa: 231,963
    • China, India & Asia Pacific: 39,790
    • Maserati: 9,808
  • Full-Year Estimates:
    • Adjusted Operating Margin: 10.5%
    • Industrial Free Cash Flow: €8.62 billion
  • Analyst Commentary:
    • Barclays (Henning Cosman): Investors concerned about US inventory levels. Market share in the US remains low at 9%.
    • Citi (Harald Hendrikse): High US inventory over 400k. Current low market share and US inventory need addressing for earnings improvement.
    • Stifel (Pierre-Yves Quemener): High inventories continue to impact performance. Better execution and free cash flow improvement needed in 2H.
    • UBS (Patrick Hummel): Inventory wind-down in North America expected to continue for a few quarters. Positive impact from new products expected.
  • Market Performance:
    • Stellantis shares in Milan down about 13% YTD
    • Stellantis (STLAM IM) has 20 buy, 10 hold and 2 sell recommendations
    • Average 12-month price target: €24.87
  • Upcoming Events: Earnings release on July 25 at 7:30am CET

Stellantis NV on Smartkarma



Analyst coverage of Stellantis NV on Smartkarma is showing positive sentiment from top independent analysts. Ming Lu‘s report highlights Stellantis and Leapmotor’s joint venture in selling electric cars in Europe, while noting the challenges faced by GAC and Li Auto with employee dismissals. Tencent Music’s impressive 43% YoY growth in music revenue in 1Q24 is also highlighted in the report.

Baptista Research‘s analysis focuses on Stellantis’ ambitious electrification strategy, praising the company’s resilience as demonstrated in its strong Full Year 2023 Results. CEO Carlos Tavares emphasized Stellantis’ record net revenues, net profit, and free cash flow, showing increases of 6%, 11%, and 19% respectively. The report underscores Stellantis’ strategic focus on profitable growth, indicating a bullish outlook on the company’s performance.



A look at Stellantis NV Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth4
Resilience5
Momentum2
OVERALL SMART SCORE4.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Stellantis NV holds a promising long-term outlook, as indicated by its impressive Smartkarma Smart Scores across key factors. With top marks in Value and Dividend, the company demonstrates strong fundamentals and a commitment to rewarding investors. Additionally, its high Resilience score highlights the company’s ability to weather market challenges successfully. While Growth and Momentum scores could see some improvement, Stellantis NV‘s overall outlook remains positive, positioning it as a solid choice for investors seeking stability and income.

Stellantis NV, a global leader in automobile and commercial vehicle manufacturing, stands out for its robust performance across various sectors. In addition to its core automotive business, the company also engages in the production of metallurgical products and manufacturing systems for the automobile industry. Furthermore, the ownership of publishing and insurance companies diversifies its revenue streams, enhancing its resilience in the face of market fluctuations. With a strong foundation in place, Stellantis NV is well-positioned to deliver sustainable returns to its investors over the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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