Stellantis NV STLA

Stellantis Earnings: Revenue Hit by Strike but Still Up 7% Year Over Year on Price, Mix, and Volume

No-moat-rated Stellantis reported third-quarter revenue of EUR 45.1 billion, rising 7% from EUR 42.1 billion reported in the prior year, despite the UAW strike. Excluding unfavorable currency, organic revenue rose 14%. The top line beat the FactSet consensus estimate of EUR 43.3 billion by 4%. Stellantis did not give specific figures for the third-quarter impact but did say that the UAW strike resulted in 50,000 lost units for a EUR 3 billion revenue hit and cost less than EUR 750 million in adjusted operating income, cumulatively for September and October. Even though headwinds continue to be substantial, we were impressed that organic revenue growth outpaced volume growth by 3 percentage points as pricing, mix, and volume supported the revenue increase. The automaker (French-domiciled for accounting purposes) discloses only revenue in the first and third quarters.