German Luxury Car Maker Expected to Report Second-Quarter Results
- Expected flat revenue for BMW in Q2 at €37.36 billion
- Automotive EBIT margin forecast at 8.7% compared to 9.2% last year
- Net profit expected at €2.62 billion from €2.96 billion a year ago
- Shares down around 22% in the past 12 months
- Warburg Research analyst expects EBIT margin at 8.4% amid lower volumes and normalization of pricing
- UBS expects consensus downgrades on automotive EBIT level
- No change expected in full-year guidance
- Higher costs in H2 compared to H1
- Investors keen on understanding BMW’s performance in China amid slowdown and competitive threats
BMW is set to report its second-quarter results on Thursday. The company is expected to post revenue of €37.36 billion ($40.43 billion), a slight increase from last year’s €37.22 billion. The automotive segment’s earnings before interest and tax margin is forecast at 8.7%, down from 9.2% in the same period last year, with net profit expected at €2.62 billion compared to €2.96 billion a year ago. Shares have fallen around 22% over the past 12 months and currently trade at €86.66. Warburg Research analyst Marc-Rene Tonn predicts an EBIT margin of 8.4%, due to lower volumes and normalization of pricing. UBS expects consensus downgrades on the automotive EBIT level, but no change in full-year guidance. China’s slowdown and competitive threats from domestic manufacturers are under scrutiny.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about BMW’s expected financial results for the second quarter, including revenue, EBIT margin, and net profit forecasts. It also includes insights from analysts on potential changes in full-year guidance and the company’s performance in China. The article is focused on the main topic without any digressions or irrelevant details.
Noise Level: 3
Noise Justification: The article provides some relevant financial information about BMW’s expected Q2 results but lacks in-depth analysis or insights beyond basic forecasts and market expectations. It does not explore the consequences of decisions on those who bear the risks nor provide actionable insights for readers.
Public Companies: BMW (BMW.DE), UBS (UBS)
Key People: Marc-Rene Tonn (Analyst at Warburg Research), Patrick Hummel (Analyst at UBS)
Financial Relevance: Yes
Financial Markets Impacted: BMW shares
Financial Rating Justification: The article discusses BMW’s expected financial results for the second quarter, including revenue, EBIT margin, and net profit forecasts, as well as potential impacts on the company’s share price. It also mentions analyst expectations and market focus on China’s slowdown and competition from domestic manufacturers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article. It discusses BMW’s financial performance and expectations for the second quarter.
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