Why Chrysler Parent Stellantis' Shares Are Gaining Today

Chrysler parent Stellantis NV STLA reported Q3 FY23 net revenue growth of 7% Y/Y to €45.1 billion.

Revenue was led by improved volume and consistent pricing, partially offset by foreign exchange impacts. "Third Engine" revenue grew 25% Y/Y in the quarter.

Total shipments rose 11% Y/Y to 1,427 thousand units, aided by improvement across Enlarged Europe (+11% Y/Y), Middle East & Africa (+102% Y/Y), North America (+7% Y/Y), and South America (+7% Y/Y).

Global BEV sales surged 37% Y/Y, led by Jeep Avenger and accelerating commercial BEV vehicle sales thanks to Citroën ë-Berlingo.

As of September 30, 2023, the total new vehicle inventory was 1,387 thousand units.

Stellantis, along with six major global automakers, plans to create a charging network installing at least 30,000 high-powered charge points to drive the EV transition in North America.

The company repurchased shares worth €0.5 billion in Q3 FY23. The company expects to complete the previously announced €1.5 billion 2023 Share Buyback Program in Q4 2023.

Also Read: Stellantis To Begin Production Of New Models At Italy's Melfi Plant: Report

FY23 Guidance: STLA confirmed the outlook for adjusted operating income margin in double-digit and industrial FCF to be positive. 

STLA said work stoppages negatively impacted net revenues by approximately €3 billion, compared to planned production, through October.

Yesterday, Canadian workers union Unifor reached a tentative agreement with Stellantis at around 7 a.m. local time on Monday following overnight negotiations with the company after workers started a strike at midnight.

Related: Stellantis And UAW Strike Tentative Agreement, Ending Six-week Labor Strike

Last week, Stellantis and Leapmotor announced a €1.5 billion ($1.58 billion) investment from Stellantis to acquire approximately 20% of Leapmotor, making Stellantis a strategic shareholder.

Price Action: STLA shares are trading higher by 3.11% at $18.56 premarket on the last check Tuesday.