Categories Earnings

Fiat Chrysler to merge with Peugeot; investors ignore lackluster Q3 results

Only a few hours after Fiat Chrysler Automobile (NYSE: FCAU) and French counterpart Peugeot announced a merger, the former reported third-quarter results that missed analysts’ consensus. However, investors were ready to forget the bad numbers as the merger is set to make it the fourth largest automaker in the world.

Post the 50-50 share swap agreement, the combined company will have around $200 billion in turnover. It will have Fiat’s John Elkann taking over as the Chairman and Peugeot’s Carlos Tavares as the CEO. The company will be listed in Paris, New York and Milan.

Volkswagen, Renault-Nissan and Toyota are the other three top automakers in terms of sales. This deal comes just months after Fiat’s failed bid to merge with Renault.

The merger is of significance, as it would give both companies that resources and leverage to operate in a weak automobile industry, and cope with the higher expenses required for new technologies such as electric and autonomous vehicles. The deal would required regulatory approval to complete.

READ: Understanding Facebook (NASDAQ: FB) Q3 2019 earnings results through 4 charts

Q3 miss

For the third quarter, Fiat Chrysler reported adjusted earnings of €0.81 per share (approx. $0.90), compared to the Wall Street consensus of $0.93 per share. Total revenue slid 1% to €27.3 billion (approx. $30.47 billion), as worldwide shipments fell 9%. Analysts expected Q3 revenues of $30.79 billion.

Shipments fell in all three regions – North America, APAC and EMEA.

FCAU shares jumped 4% during pre-market hours as investors shifted focus to the benefits of the merger. The stock is almost flat in the year-to-date period.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top