On February 15, 2024, Stellantis‘ CFO, Natalie Knight, dismissed the notion of a substantial $1 billion increase in U.S. labor costs as exaggerated. The company has faced significant financial setbacks due to labor strikes, resulting in an estimated $3.2 billion in lost revenue caused by the United Auto Workers (UAW) and the Canadian union Unifor. However, despite these challenges, Stellantis remains steadfast in its 2023 guidance, showcasing the robustness of its global presence in comparison to its primary U.S.-based competitors, GM and Ford. As part of its cost-cutting measures during the shift towards electric vehicles and the new UAW contract, the company is offering voluntary buyouts to approximately half of its U.S. salaried employees.
Natalie Knight, Stellantis’ CFO, refrained from providing specific figures regarding the impact of the new UAW contract but hinted that it would be similar to the effects experienced by Ford. The company anticipates a decrease in net income of less than $800 million due to the UAW strike, which is relatively lower compared to the repercussions faced by its counterparts in Detroit. Furthermore, Stellantis has revealed its plans to distribute profits for the second half of 2023 on February 15 following a remarkable $12.1 billion profit in the initial half of the year.
Stellantis N.V. (STLA) Stock Shows Impressive Performance on February 15, 2024
On February 15, 2024, Stellantis N.V. (STLA) exhibited impressive stock performance. STLA was trading near the top of its 52-week range and above its 200-day simple moving average, indicating a positive price momentum. STLA shares rose by $1.59, representing a 6.54% increase. The stock opened at $25.41, which was $1.02 higher than its previous close. STLA’s trading near the top of its 52-week range suggests consistent performance. STLA’s trading above its 200-day simple moving average indicates a bullish trend. Overall, STLA’s stock performance on February 15, 2024, demonstrated its resilience and attractiveness to investors.
Stellantis (STLA) Stock: Mixed Performance on February 15, 2024 with Decreased Revenue but Increased Net Income
On February 15, 2024, Stellantis (STLA) stock experienced mixed performance, with a decrease in total revenue but an increase in net income. Total revenue for Stellantis in the past year was reported at $98.81 billion, representing a decrease of 18.4% compared to the previous year. However, the company’s total revenue in the fourth quarter of the same year was $34.08 billion, showing a positive growth of 12.96% compared to the previous quarter. In terms of net income, Stellantis reported a figure of $33.06 million for the past year, representing a decline of 98.96% compared to the previous year. However, the company’s net income in the fourth quarter of the same year increased to $1.86 billion, reflecting an increase of 33.25% compared to the previous quarter. Stellantis reported an EPS of $0.02 for the past year, indicating a decrease of 98.97% compared to the previous year. However, the company’s EPS in the fourth quarter of the same year increased to $0.94, representing a growth of 5.33% compared to the previous quarter. These figures reveal a mixed performance for Stellantis stock on February 15, 2024, with a decline in total revenue and EPS compared to the previous year, but an increase in net income and EPS compared to the previous quarter. Investors and analysts should consider these figures alongside other relevant information to gain a comprehensive understanding of Stellantis’ financial performance and make informed investment decisions.
