BMW Group is set to release its results for the third quarter on Friday. Here are the key details to keep in mind:
Revenue Forecast
Analysts from FactSet predict that the German car maker will report revenue of 37.42 billion euros ($39.55 billion), a slight increase compared to EUR37.18 billion in the same period last year. However, negative exchange rates may have impacted the revenue, according to Warburg Research.
After-Tax Profit Forecast
FactSet estimates that after-tax profit will reach EUR2.60 billion, down from EUR3.175 billion in the previous year.
What to Watch For
EBIT Margin Growth
Warburg Research analysts suggest that the company's auto division could experience an increase in its earnings before interest and taxes (EBIT) margin, rising to 9.7% from 8.9% last year.
Response to Slowdown
Bernstein analysts note that BMW has a reputation for resilience during economic slowdowns, which the industry currently faces. The analysts are keen to see how the company responds to this "seasonal depression" and expect positive results from new model releases.
China
While BMW brand and Mini sales in China declined by 1.8% in the third quarter, they have risen by 1.7% over the course of the year so far, according to BMW. Investors are eagerly awaiting information regarding the financial impact of this dip and the company's outlook for China going forward.
