1. Stellantis reports a 70% drop in 2024 net profit to €5.5 billion. 2. Analysts expected €6.4 billion profit; shares are up 7% year-to-date. 3. Company faces challenges in North America and China markets. 4. A new CEO is expected to be named in H1 2024. 5. Profit warning issued for lower-than-expected sales across most regions.
The significant drop in profit and unmet analyst expectations suggests weakened investor confidence. Historical examples show that major earnings misses often lead to sharp stock price declines, particularly in the auto sector.
The significant earnings drop and ongoing executive changes indicate potential instability, impacting investor sentiment and stock performance.
Market reactions are typically immediate post-earnings announcements. If stock price is affected, it would likely be noticeable within days to weeks.