Volkswagen Preliminary Full-Year 2022 Results Just Shy of Our Estimates; No FVE Change

No-moat-rated Volkswagen AG reported preliminary full-year 2022 results that were nearly in line with our estimates. Group revenue, which includes financial services, was EUR 279 million, just shy of our EUR 280 million estimate. Adjusted EBIT for the group was EUR 22.5 billion with a margin of 8.1% versus our estimate of EUR 23.2 billion and an 8.3% margin. While we do not yet have full details, we suspect the results were supported by strong pricing and mix with improved volume compared with 2021, partially offset by supply chain disruptions from the chip shortage, the Ukraine war, inflationary cost pressures, and China's COVID-19 resurgence. The firm will report full financials and host a call with the investment community on March 14. For now, our fair value estimate is unchanged. The 5-star ordinary shares currently trade at a 49% discount, while the 5-star preferred shares trade at a 60% discount to our EUR 328 fair value estimate for both share classes.