BMW Set to Report Second Quarter Results

BMW, the high-end German car company, is scheduled to release its second-quarter results on Thursday. Let's take a look at what you can expect:

Sales Forecast

According to a Factset poll of 21 analysts, BMW is expected to report revenue of approximately 36.79 billion euros ($40.41 billion). In comparison, revenue for the same period last year was EUR34.77 billion.

EBIT Forecast

Factset predicts that BMW's earnings before interest and taxes (EBIT) will reach EUR4.26 billion, surpassing its previous year's figure of EUR3.43 billion.

What to Watch For

Filling in the Gaps

On Tuesday, BMW made various announcements, including an adjustment in their automotive EBIT margin guidance and a lowering of the free-cash flow targets. However, some numbers, such as the earnings before interest and taxes margin for the automotive division, fell below expectations. As a result, shares experienced a 6% decline. More information regarding these developments is expected to be revealed soon. Bernstein analysts emphasize that the management now faces the challenge of convincing potential investors why they should choose BMW.

Volume Strategy

BMW recently revised its volume guidance, which indicates a significantly stronger second half for sales. Analysts from Stifel consider this new target to be ambitious. As BMW aims to achieve between 2.5 million and 2.6 million units sold by the end of the year, investors will be interested in understanding the company's roadmap for reaching this goal, especially considering that they sold 1.1 million units in the first half of the year.

2024 and Beyond

Looking ahead, BMW's outlook will play a crucial role in attracting investors. Bernstein analysts note that upcoming model cycles and a strong backlog are positive indicators for the company. However, they also point out that BMW will face increasingly challenging comparison periods in the future.