By Maitane Sardon
Volvo Car is scheduled to report results for the second quarter on Thursday. Here's what you need to know:
SALES: Revenue is expected to come in at 100.95 billion Swedish kronor ($9.88 billion), according to analysts polled by FactSet. Last year, revenue for the three months to June was SEK71.3 billion.
NET INCOME: Net profit attributable to shareholders is seen at SEK3.72 billion, according to consensus estimates provided by FactSet. This compares with SEK8.94 billion a year earlier, when earnings were boosted by the listing of its Polestar brand on Nasdaq.
WHAT TO WATCH:
-OUTLOOK: The Swedish car maker is likely to confirm its 2023 outlook for "solid two-digit increase in retail sales", UBS analysts said in a research note. It is also likely to confirm its targets for 2025, which include a 8% to 10% EBIT margin and a 70% increase in global sales to 1.2 million, according to UBS.
-ELECTRIC CARS: Investors might want to look out for updates on Volvo Car's electric models. The company said in April it intends to increase volumes for fully electric cars in 2023, taking the full-year share above 11%. Earlier this month, it said June sales of its fully electric models surged to 9,535 from 2,138 a year earlier, with sales in Europe driving the increase. In June, the company unveiled its EX30, an all-electric SUV aimed at cost-conscious buyers that is cheaper than its seven-seater cousin, the EX90, and whose production will begin at its factory in China soon. Analysts at Stifel said this launch will give the company more exposure to the more competitive market segments and increase overlap with BYD and Tesla.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
July 19, 2023 10:12 ET (14:12 GMT)
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