Faurecia Q3 Revenue Jumps on Lower Chip Impact; Maintaining EUR 48.50 Fair Value Estimate

No-moat-rated French auto parts supplier Faurecia reported third-quarter 2022 revenue of EUR 6.6 billion representing a 92% increase on an as reported basis compared with EUR 3.4 billion reported in the prior year. Excluding revenue from the Hella acquisition and favorable currency effect, organic revenue increased 31% as the chip shortage alleviated compared to the prior year period. The year-over-year third-quarter increase was 140 basis points better than the 30% jump in global light vehicle production. However, excluding negative geographic mix (COVID-19 lockdown in China), the firm’s revenue outpaced production by 490 basis points. Faurecia only reports revenue in the first and third quarter.