Vitesco's Q3 Results Modestly Improve, Tweaks 2022 Guidance; Slight FVE Increase to EUR 104

Narrow-moat Vitesco reported a third-quarter loss per share of EUR 0.34, well below the EUR 0.02 loss per share FactSet consensus, but EUR 1.94 higher than last year’s pro forma result (Vitesco was spun-off from Continental in September 2021). Due to less sporadic customer production from the chip crunch, consolidated revenue jumped 20% to EUR 2.3 billion from EUR 1.9 billion last year and beat consensus by 1%. Excluding favorable currency, organic revenue rose 14% versus a 28% increase in global light vehicle production. However, core organic revenue, excluding wind-down business lines, increased 23%, underperforming the market as fourth quarter last year was hit harder by the chip crunch. The firm expects to significantly beat the market in the fourth quarter this year.