By Senad Karaahmetovic
Shares of Stellantis (BIT: ) rose Thursday in pre-market trading after the automaker reported strong results.
Stellantis reported adjusted earnings before interest and taxes (EBIT) of 12.4 billion euros ($12.7 billion), beating analysts’ estimates of 9.42 billion euros. The company also announced total sales of 88 billion euros for the first half of the year, above the 83.56 billion euros expected.
Adjusted operating margin also surprised on the higher side, coming in at 14.1%, above the 11.4% expected. Stellantis reported industrial free cash flow of €5.32 billion, beating consensus of €1.53 billion. And this, despite a 7% drop in international shipments in the first half.
The company reiterated its full-year outlook for adjusted operating margin and industrial free cash flow, although it lowered its industrial outlook for North America and Greater Europe by -8% and -12%, respectively.
Stellantis said it delivered “excellent performance,” fueled by strong demand for its high-end vehicles, particularly electric ones.
“We are ahead of Tesla (NASDAQ:) in Europe for sales of electric vehicles, and not far from Volkswagen AG (ETR:),” Chief Financial Officer Richard Palmer said on the conference call, according to Reuters.
“We are building Stellantis to be a sustainable mobility technology company that is ready for the future,” added CEO Carlos Tavares.
Analysts at Oddo BHF said Stellantis recorded another significant result.
“While the valuation is more favorable given the current valuation of the absurdity, macroeconomic uncertainty may unfortunately reduce this short-term potential,” the analysts wrote in a note to clients.
Shares in Milan-listed Stellantis rose 3.3% today.