Mercedes-Benz Group to Report Third Quarter Results

Mercedes-Benz Group is set to release its third quarter results on Thursday. Here are the key details:

Revenue Forecast

According to a consensus provided by FactSet, the German luxury car maker is expected to report a revenue of 37.34 billion euros ($39.54 billion) for the third quarter. This compares to a revenue of EUR37.72 billion in the same period last year.

EBIT Forecast

A FactSet consensus forecasts Mercedes-Benz’s quarterly earnings before interest and taxes (EBIT) to be EUR4.53 billion. This is a decrease from the prior-year EBIT of EUR5.20 billion.

What to Watch

Margins

Stifel analysts anticipate that Mercedes-Benz’s third-quarter EBIT margin for its cars segment will be impacted by higher costs from suppliers and delayed production of new models due to missing powertrain parts. They expect a margin of 12%, down from 14% in the second quarter.

Vans Business

Bernstein projects that the vans business will continue to thrive due to strong pricing and demand. They estimate the division’s margin to be at 15%, which is at the upper end of the company’s guidance.

Industry Slowdown

The overall car industry is experiencing a slowdown due to macroeconomic concerns, high interest rates, and affordability issues. However, Bernstein analysts believe that Mercedes-Benz’s pricing will help counter any decrease in demand. In October, the company reported a 12% growth in car sales in Europe, but a 10% decline in Asia.