- Preliminary adjusted Ebit margin approximately 2%, below the estimated 4.22%.
- Preliminary sales stand around EU9.8 billion, not reaching the estimated EU10.09 billion.
- Preliminary automotive revenue is about EU4.8 billion, against the estimated EU4.97 billion.
- Preliminary Tires revenue approximately EU3.3 billion, falling short of the estimated EU3.39 billion.
- Preliminary ContiTech revenue is about EU1.6 billion, below the estimated EU1.72 billion.
- Preliminary adjusted free cash flow turned negative at about EU1.1 billion.
- The first quarter results fail to meet market expectations in terms of sales, Ebit margin and free cash flow.
- Despite the lower-than-expected results, the company sees potential for improvement across all group sectors.
- The company confirms its financial forecasts for the fiscal year 2024.
- The first quarter was burdened by a payment of approximately €500 million for the reacquisition of ContiTech AG shares.
- The automotive group’s sales have deviated due to reduced volume, chiefly in Europe, and pending revisions of customer pricing contracts.
- The company’s stock currently holds 12 buy ratings, 11 hold ratings, and 1 sell rating.
A look at Continental Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have given Continental a positive long-term outlook. With a strong score of 5 in Growth, Continental is expected to expand and develop its business operations in the future. This indicates a promising trajectory for the company’s growth potential over the coming years. Additionally, Continental scored well in Value, indicating that the company is priced attractively compared to its intrinsic value, which could be an encouraging sign for potential investors.
While Continental scored lower in Dividend, Resilience, and Momentum, the high score in Growth suggests that the company may have a solid foundation for future revenue generation and expansion. Continental AG, a renowned manufacturer of tires, automotive parts, and industrial products worldwide, is well-positioned to capitalize on its strengths in innovation and product development to drive future growth and success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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