Headwinds Hit BMW Q2 Results but Margins Impress; Tweaks 2022 Guidance; FVE Increased to EUR 150

Narrow-moat BMW reported second-quarter earnings per share of EUR 4.30, well ahead of the EUR 3.67 FactSet consensus estimate by EUR 0.63 but down EUR 2.93 from EUR 7.23 EPS reported last year. Excluding special items, this year for BBA consolidation effects and last year for pension reversal, we estimate EPS of EUR 6.00 versus EUR 4.95 a year ago. Despite a 20% plunge in automotive volume from the Ukraine crisis, chip crunch, and China COVID-19 lockdowns, consolidated revenue beat consensus by 1% and increased 22% to EUR 34.8 billion on a 19% increase in industrial revenue.