Volkswagen VWAGY has reported a fourth-quarter 2024 earnings per share (EPS) of 67 cents, decrease than the year-ago quarter’s EPS of $1. Revenues of $93.21 billion declined 0.7% from the prior-year quarter’s revenues of $93.88 billion, primarily resulting from a decline in automobile gross sales.
For the total 12 months, nonetheless, VWAGY’s gross sales revenues grew 0.7% on a year-over-year foundation to $352.8 billion. The automaker reported a 15% year-on-year drop in its 2024 annual working revenue, citing rising prices and restructuring-related bills, leading to an working margin of 5.9%.
The corporate bought 9 million automobiles in 2024, marking a 3.5% drop from 2023. Gross sales progress in South America was not sufficient to offset the declines in China. In the meantime, North American and European gross sales remained steady. Regardless of the challenges, Volkswagen noticed an 88% improve in orders for battery-electric automobiles in Western Europe.
The corporate has proposed a 30% lower in dividends, recommending €6.36 per abnormal share and €6.36 per most well-liked share. The payout ratio will likely be roughly 30%.
For 2025, VWAGY expects gross sales revenues to develop by as much as 5% in comparison with 2024. It additionally anticipates its working margin to be between 5.5% and 6.5% within the 12 months. VWAGY expects sturdy progress in 2025 to a battery-electric automobile share of 10% to 14% globally. The corporate, nonetheless, can also be getting ready for headwinds within the 12 months, because the Trump administration’s 25% tariffs on auto imports from Mexico and Canada are set to considerably disrupt Volkswagen’s provide chains and improve prices.
Moreover, rising competitors, particularly within the EV area from rising Chinese language producers like BYD and NIO, risky commodity costs, and emissions-related laws just like the EPA 2027 are additionally prone to create challenges for the corporate.
VWAGY’s 2024 Highlights
Volkswagen’s 2024 was marked by noteworthy new mannequin launches and strategic partnerships. The corporate launched over 30 new fashions throughout its manufacturers, together with Volkswagen, Skoda, CUPRA, Audi and Porsche. The revamped lineup has improved product high quality and, per the corporate, it has been receiving constructive suggestions from clients.
In China, VWAGY strengthened its regional tech partnerships with firms like XPeng and Horizon Robotics. The launch of the corporate’s Hefei innovation hub aided it in accelerating its growth time within the nation. In the meantime, in North America, Volkswagen strengthened its place with the revival of the Scout model, driving progress within the pickup and SUV segments.
Strategic collaborations performed a vital position within the reported 12 months for the corporate, with partnerships with XPeng for China and Rivian for world markets contributing to progressive developments in software program and digital structure. Volkswagen’s software program collaboration with Cariad, targeted on autonomous driving, infotainment and cloud providers, is aimed toward guaranteeing future competitiveness.
The corporate’s push for electrification additionally continued in 2024, with EV gross sales stabilizing and new fashions just like the Porsche Macan, Audi Q6 e-tron and Skoda ELROQ aimed toward driving progress in 2025.
Zacks Rank and Shares to Contemplate
VWAGY presently has a Zacks Rank #3 (Maintain).
Some better-ranked shares within the auto area are Blue Fowl BLBD, Basic Motors GM and Zapp Electrical Autos Group Restricted ZAPP. BLBD, GM and ZAPP presently carry a Zacks Rank #2 (Purchase) every. You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 EPS is presently pegged at $4, unchanged over the previous 30 days and suggesting progress of 15.61% on a year-over-year foundation.
The Zacks Consensus Estimate for GM’s 2025 earnings has moved north 0.5% over the previous 7 days and suggests year-over-year progress of 8.68%. It’s presently pegged at $11.52 per share.
The Zacks Consensus Estimate for ZAPP’s fiscal 2025 loss is presently pegged at 84 cents per share, and narrowed by half over the previous 30 days. The determine suggests progress of 67.2% on a year-over-year foundation.
5 Shares Set to Double
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General Motors Company (GM) : Free Stock Analysis Report
Blue Bird Corporation (BLBD) : Free Stock Analysis Report
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
Zapp Electric Vehicles Group Limited (ZAPP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
