Mercedes-Benz Q3 Results Impress Despite Headwinds, Tweak Guidance; Slight FVE Increase to EUR 94

Mercedes-Benz Group reported third-quarter earnings per share of EUR 3.66, EUR 0.48 better than the FactSet consensus and up EUR 1.92 from a year ago. With improved chip availability versus the prior year when the shortage was at its worst, total volume jumped 35% to 634,000 units from 471,000. Consolidated revenue rose 19% to EUR 37.7 billion from EUR 31.6 billion in the prior year. Price and mix were major contributors as the firm continues to allocate chips to higher margin vehicles and focus on top-end luxury expansion. Third-quarter group adjusted EBIT was EUR 5.3 billion for a very healthy 14.2% margin versus EUR 3.1 billion and a 9.8% margin last year, showing an impressive 240 basis point expansion.