Stellantis (NYSE:STLA) Posts Earnings Results, Misses Expectations By $0.26 EPS

Stellantis (NYSE:STLA) issued its quarterly earnings results on Wednesday. The company reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.26), FiscalAI reports. The company had revenue of $42.60 billion for the quarter, compared to the consensus estimate of $48.50 billion.

Here are the key takeaways from Stellantis’ conference call:

• Stellantis reaffirmed its 2026 guidance and expectation for positive industrial free cash flow in 2027, with Q3 net revenue up 1%, adjusted operating income margin improving 50 basis points year over year, and industrial free cash flow improving by €300 million.
• The Value Creation Program is ahead of schedule, and management expects savings to accelerate to the mid-hundreds of millions of euros in Q4. Executives said the company expects to exceed its €2.4 billion VCP run-rate target entering 2027 and its €6 billion target for 2028.
• North America showed significant improvement, including a $539 million year-over-year increase in adjusted operating income, stronger pricing, production-efficiency gains, and robust demand for Ram products. New launches such as the Ram Rebel Sport Truck reportedly sold out its initial allocation within 24 hours.
• Europe remained a major weakness, with adjusted operating income falling to a €311 million loss amid persistent pricing pressure, unfavorable mix from higher BEV penetration, and Chinese competition. The company also expects continued headwinds from raw materials, memory chips, recalls, and warranty costs.
• Stellantis plans to reduce U.S. dealer inventory to 320,000–350,000 units by year-end through production discipline and higher sales, while Q4 cash flow is expected to benefit substantially from seasonal working-capital reversal. Total inventory was still up 14% year over year at the end of Q3.

Stellantis Stock Performance

NYSE STLA traded down $0.10 on Friday, reaching $4.59. The stock had a trading volume of 20,825,882 shares, compared to its average volume of 21,892,166. The business’s 50-day moving average price is $4.80 and its 200 day moving average price is $6.63. Stellantis has a 12-month low of $3.92 and a 12-month high of $12.22. The stock has a market cap of $17.30 billion, a P/E ratio of 11.78, a price-to-earnings-growth ratio of 0.40 and a beta of 1.49. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.76 and a current ratio of 1.04.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on STLA. Sanford C. Bernstein lowered Stellantis from a “market perform” rating to an “underperform” rating in a report on Friday, August 7th. Evercore set a $7.50 price target on shares of Stellantis in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Stellantis in a research report on Tuesday, July 14th. TD Cowen restated a “hold” rating on shares of Stellantis in a research report on Wednesday, August 26th. Finally, Freedom Broker reduced their price target on shares of Stellantis from $7.50 to $6.80 and set a “buy” rating on the stock in a research report on Tuesday, October 13th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, ten have issued a Hold rating and seven have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $7.38.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Bank of America Corp DE grew its position in Stellantis by 84.7% during the first quarter. Bank of America Corp DE now owns 23,518,418 shares of the company’s stock valued at $166,746,000 after acquiring an additional 10,783,370 shares during the period. Swiss National Bank grew its position in shares of Stellantis by 26.8% in the 1st quarter. Swiss National Bank now owns 6,981,716 shares of the company’s stock worth $48,774,000 after acquiring an additional 1,477,637 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Stellantis by 19.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,501,139 shares of the company’s stock worth $24,810,000 after purchasing an additional 574,048 shares during the period. Renaissance Technologies LLC increased its holdings in shares of Stellantis by 118.4% during the first quarter. Renaissance Technologies LLC now owns 3,365,143 shares of the company’s stock valued at $23,540,000 after purchasing an additional 1,824,139 shares during the period. Finally, Pictet Asset Management Holding SA lifted its holdings in shares of Stellantis by 3.3% in the first quarter. Pictet Asset Management Holding SA now owns 1,563,595 shares of the company’s stock valued at $10,916,000 after buying an additional 49,349 shares during the period. Hedge funds and other institutional investors own 59.48% of the company’s stock.

About Stellantis

Stellantis N.V. (NYSE: STLA) is a global automotive company formed in 2021 through the merger of Fiat Chrysler Automobiles and Groupe PSA. The company designs, engineers, manufactures and sells passenger cars, light commercial vehicles and mobility solutions across markets worldwide.

Stellantis operates a broad portfolio of automotive brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall. Its products range from mass-market cars and sport utility vehicles to commercial vans, performance vehicles and luxury automobiles.