Volkswagen
Note: This is a daily stock update and the information stands true as of 30/10/24, 09:00 CET.
Company Update:
These results highlight the need for cost cutting plan currently under discussion at the group. I see no reason to buy the stock for the time being. We remain extremely cautious on the automotive sector as a whole. Our only positive rating is on Renault.
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Company Update:
Q3 sales was a slight beat, down 0.5% to €78.5bn vs consensus at €76.7bn.
Operating profit came is down 42% to €2.86bn, a slight miss vs consensus at €2.92bn but a clear miss vs our expectation of €3.7bn. Operating margin at 3.6% is the lowest margin by the group since the pandemic.
One silverlining was the Automotive net cash flow in Q3 at €3.4bn (up 38% YoY), significantly ahead of the €1.7bn consensus.
The group confirmed its FY guidance that was adjusted in September: €300bn in sales with a 5.6% operating margin (ie a €1.68bn operating income). The unchanged operation margin target at 5.6% implying a sharp improvement in Q4 which may be optimistic in our view.
Expert Opinion:These results highlight the need for cost cutting plan currently under discussion at the group. I see no reason to buy the stock for the time being. We remain extremely cautious on the automotive sector as a whole. Our only positive rating is on Renault.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.