BMW anticipates increased earnings, as previously predicted
Unleashing BMW's Q3 Boom: A Glimpse into the Company's Revenue Soar
BMW, unyieldingly propelling ahead, witnessed a substantial surge in revenue and earnings during the third quarter, even with sales marginally remaining the same as the previous year. The three-month haul, encompassing September, tallied an impressive €37.2 billion, a whopping 35.3% escalation from the same quarter in 2021. This growth was primarily fueled by the company's impressive vehicle pricing strategy, favorable product mix, and the full integration of its Chinese joint venture, BBA (BMW Brilliance Automotive), since February 11. Earnings before interest and taxes (EBIT) soared by a staggering 27.7%, reaching almost €3.7 billion.
Diving into the Automobile segment, revenue escalated by a remarkable 42.7%, touching €32.3 billion. Despite escalating costs incurred from semiconductor shortages, supply chain disruptions, and heightened raw material and energy prices, EBIT skyrocketed by an astounding 63.6%, resulting in a robust operating margin of 8.9%. For the initial nine months of 2022, the margin in this segment gently swayed to 8.7%. The company is optimistic and steadfast in its pursuit of achieving the upper end of its projected range for the Automobile segment of 7-9% for the entire 2022 fiscal year.
The third quarter bore witness to a notable surge in the company's electric vehicle sales, with over 128,000 BEVs (fully electric BMW and MINI vehicles) shipped globally. Remarkable sales and order intake for the BMW iX3, iX, i4, and Mini Cooper SE models materialized, with the recently debuted BMW i3 receiving an overwhelmingly positive response in China.
In the fourth quarter, deliveries in the Automobile segment are poised to witness a considerable spike compared to the previous year. Nevertheless, investments and tax prepayments are predicted to ratchet up significantly as well in the current quarter.
Refusing to buckle under the pressure from external factors, BMW stands firm on its full-year forecast. Deliveries are aimed to slide slightly below the previous year's level (approximately 2.5 million vehicles). The forecast was initially tempered in the summer. Sales of BEVs are projected to double. The pre-tax result is poised to significantly outshine due to the full consolidation of BBA. In the Auto segment, BMW expects a minor decrease in deliveries, but this would likely be offset by positively bolstered "price and mix effects and the continued exceptional growth of the used car markets," the company stated. As the proportion of electric vehicles in the company's deliveries escalates beyond expectations, BMW could potentially reduce its EU fleet's CO2 emissions by 5-10% compared to the previous year.
"Overall, our company anticipates a potent upsurge in momentum for 2023," beamed Chief Financial Officer Nicolas Peter.
The Online Brokerage Redaktion currently endorses the BMW share, branding it as a "buy". Their target price hangs resolutely at €95, boasting a firm stop at €58.
- BMW's Q3 earnings before interest and taxes (EBIT) soared by 27.7%, reaching nearly €3.7 billion, a significant increase from the same quarter in 2021.
- The company's electric vehicle sales surged during the third quarter, with over 128,000 BEVs (fully electric BMW and MINI vehicles) shipped globally.
- For the full-year forecast, BMW stands firm, expecting sales to slide slightly below the previous year's level but with a significant increase in sales of BEVs, potentially reducing EU fleet's CO2 emissions by 5-10%.
- The Online Brokerage Redaktion currently endorse the BMW share, branding it as a "buy" with a target price of €95 and a firm stop at €58.
