By Senad Karaahmetovic
Shares of Stellantis (BIT: ) were up 4.92% at 1 p.m. on Thursday, after the manufacturer reported positive results.
Stellantis reported adjusted earnings before interest and tax (Ebit) of €12.4 billion, above analysts’ estimates of €9.42 billion. The company also reported net income of €88 billion for the first half of the year, easily beating expectations of €83.56 billion.
Adjusted operating margin also surprised, rising 14.1%, higher than the 11.4% expected. Stellantis reported industrial free cash flow of €5.32 billion, above consensus of €1.53 billion. The figure was achieved despite a 7% drop in international shipments in the first half.
The company reiterated its full-year forecast for adjusted operating margin and industrial free cash flow, despite lowering the broader industry outlook in North America and Europe to -8% and -12%, respectively.
Stellantis said it delivered “amazing performance” due to the demands of its high-end vehicles such as electric models.
“We are ahead of Tesla (BVMF:) (NASDAQ:) in Europe for sales of electric vehicles and not far from Volkswagen AG (ETR:)” said the company’s chief financial officer, Richard Palmer, on a conference call, according to Reuters.
“We envision Stellantis as a future-proof mobility technology company,” added CEO Carlos Tavares.
Analysts at Oddo BHF said that Stellantis “exceeded expectations”.
“Although the rating assessment is more favorable due to the abnormal valuation, the overall uncertainty may limit potential in the short term,” the analyst wrote in a note to clients.