Volkswagen (Automobile)

Note: This is a daily stock update and the information stands true as of 30/10/24, 09:00 CET.

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.

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