Fiat Chrysler Automobiles NV. (BIT:FCA): Are Analysts Bullish?

In December 2017, Fiat Chrysler Automobiles NV. (BIT:FCA) released its most recent earnings announcement, which showed that the company benefited from a large tailwind, leading to a high double-digit earnings growth of 93.62%. Below is a brief commentary on my key takeaways on how market analysts predict Fiat Chrysler Automobiles's earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Fiat Chrysler Automobiles

Analysts' expectations for the coming year seems positive, with earnings expanding by a robust 46.74%. This growth seems to continue into the following year with rates reaching double digit 51.35% compared to today’s earnings, and finally hitting €5.80B by 2021.

Although it’s informative understanding the rate of growth year by year relative to today’s value, it may be more insightful estimating the rate at which the earnings are moving on average every year. The advantage of this approach is that we can get a better picture of the direction of Fiat Chrysler Automobiles's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 14.45%. This means that, we can anticipate Fiat Chrysler Automobiles will grow its earnings by 14.45% every year for the next few years.

Next Steps:

For Fiat Chrysler Automobiles, I've compiled three important aspects you should further research:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is FCA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FCA is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FCA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.