Continental Full Year 2023 Earnings: EPS Misses Expectations

Continental (ETR:CON) Full Year 2023 Results

Key Financial Results

• Revenue: €41.4b (up 5.1% from FY 2022).
• Net income: €1.16b (up by €1.09b from FY 2022).
• Profit margin: 2.8% (up from 0.2% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: €5.78 (up from €0.33 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Continental EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%.

The primary driver behind last 12 months revenue was the Automotive segment contributing a total revenue of €20.3b (49% of total revenue). Notably, cost of sales worth €32.6b amounted to 79% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Research & Development (R&D) costs, amounting to €4.13b (54% of total expenses). Explore how CON's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Auto Components industry in Germany.

Performance of the German Auto Components industry.

The company's shares are down 7.0% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 1 warning sign for Continental you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.