Volvo Car is set to release its second-quarter results this Thursday. Here are the key details you should know:
Revenue is projected to reach 100.95 billion Swedish kronor ($9.88 billion), according to analysts polled by FactSet. This is a significant increase from the SEK71.3 billion revenue recorded in the same period last year.
Consensus estimates provided by FactSet suggest a net profit attributable to shareholders of SEK3.72 billion. This figure is lower compared to the SEK8.94 billion reported in the previous year, which was driven by the listing of Volvo Car’s Polestar brand on Nasdaq.
What to Watch
In a research note, UBS analysts anticipate that Volvo Car will affirm its 2023 outlook, which predicts a “solid two-digit increase in retail sales.” The company is also expected to confirm its targets for 2025, including an 8% to 10% EBIT margin and a 70% surge in global sales to 1.2 million units.
Investors should pay attention to updates on Volvo Car’s electric models. The company announced in April its plans to increase volumes for fully electric cars in 2023, with a goal of exceeding an 11% full-year market share. Recent reports revealed that sales of Volvo Car’s fully electric models spiked to 9,535 units in June, compared to 2,138 units sold during the same month last year. This growth was primarily driven by European sales.
Volvo Car also introduced its new all-electric SUV, the EX30, in June. Targeting cost-conscious buyers, the EX30 is priced more affordably than its seven-seater counterpart, the EX90. Production of the EX30 will commence in China soon, providing Volvo Car with more presence in competitive market segments and increasing overlap with rivals like BYD and Tesla.