Renault Shares Surge Post Q3 Results

Shares of Renault (EPA:RENA) jumped on Thursday following its third-quarter results that exceeded estimates.

At 3:54 am (0754 GMT), Renault was trading 4.5% higher at €42.06.

The company reported sales of €10.7 billion for the quarter, surpassing its own consensus of €10.4 billion.

> “We would focus on the fact new product performance is driving top-line acceleration, total inventory is under control with a 2m order backlog, giving management confidence that a strong product mix can continue further,” said analysts at Morgan Stanley in a note.

Despite a slight decline in vehicle registrations, Renault managed to limit dealer de-stocking, positively impacting their results.

The results also reflected a healthy product mix, with new models across both the Renault and Dacia brands boosting sales.

> “Given the underperformance of the sector and warnings from almost all other OEMs, Renault has clearly executed exceptionally well and has beaten low expectations,” said analysts at Citi Research in a note.

The company maintained its full-year guidance, targeting an operating margin of at least 7.5% and free cash flow of over €2.5 billion.

Inventory levels are reported to be under control, with Renault holding 528,000 units, and a two-month order backlog indicates strong demand for their vehicles.

> “This is somewhat higher than the 490k we had forecast, which obviously supports 2H 24 EBIT,” said Citi Research.