"Challenging External Environment": Volvo Crashes Most On Record After Earnings Miss
Shares in Volvo Cars crashed the most on record in Stockholm, with Bloomberg data going back to late 2021, after it reported fourth-quarter earnings that missed analyst expectations.
A toxic blend of higher US tariffs, cuts to EV subsidies, a stronger Swedish krona versus a weaker dollar, and an intensifying price war in China all squeezed fourth-quarter profitability, the Swedish-origin automaker detailed in its earnings release.
It reported an Ebit margin of just 2% and an operating income that came in well below Bloomberg Consensus estimates.
Here's a snapshot of fourth quarter estimates (courtesy of Bloomberg):
Revenue SEK94.38 billion, estimate SEK101.83 billion (Bloomberg Consensus)
Operating income SEK1.89 billion, estimate SEK4.6 billion
Ebit margin 2%, estimate 4.56%
EPS SEK0.43, estimate SEK1.24
Sales volume 195,700, estimate 196,850
Europe retail sales volume 90,000 units, estimate 93,693 (2 estimates)
China retail sales volume 44,200 units, estimate 42,956 (2 estimates)
US retail sales volume 30,900 units, estimate 33,350 (2 estimates)
Others retail sales volume 30,600 units, estimate 27,965 (2 estimates)
BEV Vehicles sales volume 46,700 units
Volvo wrote in the earnings release that "results reflect a challenging external environment."
"We have a very tough market," CEO Hakan Samuelsson ...
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