Why Stellantis Stock Is Crashing Today
In light of lingering economic challenges, it doesn't come as a complete surprise, but seeing it in writing has nevertheless jolted investors. Shares of carmaker Stellantis (NYSE: STLA) are deep in the red Monday, down 12.9% as of midsession after the company lowered its operating margin and cash flow guidance for the current fiscal year.
The company's announcement echoes similar warnings recently issued by rival European automakers Volkswagen (OTC: VWAP.Y) and Mercedes-Benz (OTC: MBGY.Y).
In response to "lower than expected sales performance in the second half of the year across most regions" (and "North American performance issues" in particular), Italy's Stellantis says its operating income margin rates for fiscal 2024 should land between 5.5% and 7%. That's down from previous profit-margin guidance of "double digits."
Source Fool.com
