Stellantis will announce its first-half results this week, specifically on Thursday, July 25, 2024. According to Visible Alpha estimates, the automotive Group that produces Fiat, Alfa Romeo, Lancia, Jeep, Dodge, and numerous other brands, is expected to report revenue of 86.64 billion euros, down from 98.37 billion recorded in the first half of the previous year. The expected operating profit is 8.82 billion euros, down from 14.13 billion in the same period last year. The automotive group’s shares have increased by 15 percent in the last 12 months, reaching 18.99 euros.
According to analysts, Stellantis’ earnings for the first half of 2024 will be significantly lower compared to 2023
The automotive group led by CEO Carlos Tavares is expected to record margins in the first half of the year in the lower range of its target interval, between 10 percent and 11 percent, Barclays analysts said in a note. Stellantis has acknowledged a disastrous first half of the year, with weak sales in both the United States and Europe. Analysts also point to unfavorable exchange rates as adverse factors.
High inventory levels at Stellantis dealerships in the United States remain a significant problem to address. Analysts and investors are concerned about the slow pace at which this excess stock is being reduced, and if price reductions will be necessary, this will only hurt profits.
Analysts predict a better second half thanks to cost-cutting and the planned launch of 18 new vehicles. But recent recalls of fire-risk batteries in Chrysler Pacifica plug-in hybrids could be of interest to investors on the call. We’ll see if the analysts’ predictions will indeed be accurate or if they will be disproved by the Stellantis group.