Earnings Alerts

Renault SA (RNO) Earnings: FY Operating Margin Forecast Misses Estimates, Impact on Financial Outlook

  • Renault revised its full-year operating margin forecast to 6.5%, down from an earlier expectation of at least 7%. Market estimates were at 7.1%.
  • The company now anticipates free cash flow between EU1 billion and EU1.5 billion, compared to a previous forecast of at least EU2 billion. The market had estimated EU2.09 billion.
  • Preliminary first-half results show an operating margin of 6%, falling short of the 6.8% market estimate.
  • Preliminary revenue for the first half of 2025 was EU27.6 billion, slightly above the estimate of EU27.46 billion.
  • Duncan Minto has been appointed as Interim CEO of Renault, previously serving as CFO.
  • The investment outlook for Renault includes 16 “buy” ratings, 8 “hold” ratings, and no “sell” ratings.

Renault SA on Smartkarma



Analysts on Smartkarma, like Baptista Research, are covering Renault SA and providing valuable insights. In a recent report titled “Renault SA: Initiation of Coverage- Strategic Tie-Ups with Geely Can Unlock Untapped Market Riches!”, Baptista Research highlighted Renault Group’s strong performance in 2024. The company demonstrated disciplined operations and strategic repositioning, resulting in an impressive operating margin of 7.6% (EUR 4.3 billion) – the highest in its 126-year history. Renault also generated nearly EUR 3 billion in free cash flow, securing a net cash position exceeding EUR 7 billion.



A look at Renault SA Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth3
Resilience2
Momentum2
OVERALL SMART SCORE3.4

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

Renault SA, a company specializing in passenger cars and light commercial vehicles, has received positive Smartkarma Smart Scores in the areas of Value and Dividend, with top scores of 5 in both categories. This suggests that the company is considered strong in terms of its stock valuation and its dividend yield. However, it lags slightly in Growth, Resilience, and Momentum, scoring 3, 2, and 2 respectively. Despite lower scores in these areas, the high ratings in Value and Dividend indicate a potentially stable and financially rewarding long-term outlook for Renault SA.

Renault SA emphasizes its expertise in designing, manufacturing, marketing, and repairing vehicles while also offering financial services such as credit for new and used vehicles. Investors may find comfort in the strong Value and Dividend scores, which speak to the company’s financial health and shareholder rewards. With a focus on innovation and market presence, Renault SA‘s long-term prospects could be promising based on these Smart Scores.


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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars