Porsche AG is set to release its third-quarter results on Wednesday. Here are the key details:
Sales Forecast
Analysts from FactSet estimate that the German luxury sports car company will report revenue of approximately 9.59 billion euros ($10.23 billion). In the third quarter of 2022, Porsche’s sales reached EUR8.82 billion.
Net Income Forecast
According to data from FactSet, four analysts predict that net income will reach EUR1.24 billion, compared to EUR1.185 billion the previous year.
What to Watch
Possible Volume Slowdown
As the majority owner of Porsche AG is Volkswagen Group, the company may face the impact of slowing demand across the industry. Despite a 10% increase in deliveries for the first nine months of the year compared to the same period in 2022, UBS expects a relatively slow quarter due to weak sales of the Macan model and the new Cayenne ramp-up during this reporting period.
Pricing
Bernstein analysts note that Porsche’s strategy of prioritizing value pricing over units sold makes the company’s 2023 guidance for earnings before interest and taxes (EBIT) of 17% to 19% still achievable. However, pricing growth is expected to be slower than anticipated by both the company and analysts, which could be reflected in the third-quarter figures.
Battery-Electric Vehicle Sales
Bernstein suggests that slowing demand for fully electric vehicles, coupled with delays in battery-electric vehicle (BEV) technology for Porsche, may pose challenges for the company.
