Contemplating significant profits and potential letdowns, consider offloading Volkswagen and BASF stocks prior to their quarterly earnings releases?
Volkswagen and BASF, two of Germany's most prominent companies, are gearing up to reveal their Q3 2024 earnings. Here's a rundown of the current expectations and the factors that could influence their performance.
Volkswagen's stock has been in the spotlight recently, with a sharp drop of almost 2 percent today due to new reports of plant closures in Germany and further job cuts in Wolfsburg. Despite this setback, the company is expected to report improved free cash flow compared to last year, with a projected figure of 2.175 billion euros. However, earnings per share are forecasted to drop from 8.39 euros in Q3 2023 to 4.31 euros. EBITDA is expected to plummet from 13.25 billion euros to 4.6 billion euros, and revenue is projected to be only slightly lower than the previous year at 76.7 billion euros.
The Q2 profit drop and lowered 2025 financial forecast at Volkswagen imply potential caution, but the stock’s recent gain suggests the market may have somewhat priced in or reacted differently. Investors should keep a close eye on official earnings previews, analyst reports, and market developments as Q3 approaches for more definitive signals.
BASF, on the other hand, is expected to report revenue of 15.46 billion euros in Q3, a 1.7% decrease from the previous year. EBITDA is projected to improve by 10.5% to 1.623 billion euros. The company's stock is currently dealing with the lower boundary of its upward trend channel and the 50-day line.
For BASF, lacking specific downside earnings signals or forecasts means there is no clear basis in the results to anticipate disappointing Q3 earnings. Broader market uncertainty and trade issues remain risks but are not specific enough to warrant a blanket sell decision solely based on Q3 earnings concerns at this time.
Interestingly, the managing editor-in-chief of this publication, Mr. Frank Pöpsel, has positions in Volkswagen Vz. financial instruments, while the CEO of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has positions in BASF financial instruments.
On Wednesday, October 30, 2024, both BASF and Volkswagen will present their latest quarterly results. As always, investors are advised to approach these announcements with a discerning eye, considering the broader market context and the companies' individual performance trends.
Investors seeking more specialized analyst forecasts or news specifically focused on BASF or Volkswagen Q3 2024 can reach out for further assistance.
Investors should anticipate Volkswagen's Q3 2024 earnings report to display improved free cash flow, but a potential drop in earnings per share and EBITDA, while revenue is projected to be slightly lower than last year's. On the other hand, BASF is expected to report a slight decrease in revenue, but an improvement in EBITDA for Q3 2024. Both companies will present their Q3 2024 results on Wednesday, October 30, 2024, and investors are encouraged to consider the broader market context and each company's individual performance trends.
