April 29, 2024 12:45 GMT
Volkswagen (A3/BBB+): 1Q24 Results Preview
CONSUMER CYCLICALS
Volkswagen report Q1 tomorrow pre-open; margins in focus
• Consensus sees €74.4bn revenue and €4.8bn adj. operating income, 2% and 16% lower YoY respectively.
• At 4Q23 Volkswagen produced a 2% beat on revenue and EBIT. Equity was disappointed by China performance and higher capex outlook.
• Management guided for 7-7.5% operating margin, €4.5-6.5bn FCF.
• Spreads have been broadly flat vs peers since Q4 results.
• Margins will be in focus with VW absorbing new model costs, EV price pressure and supply chain issues. Most analysts are expected margins to come in below target. China outlook is likely to drive sentiment also.
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