Vitesco Q4 Results Improve on Less Chip Disruption; Slight FVE Increase to EUR 109

Narrow-moat-rated Vitesco reported fourth-quarter earnings per share before special items of EUR 2.29, well above the EUR 1.45 FactSet consensus EPS and EUR 0.66 higher than last year's EUR 1.63 EPS. Due to less-sporadic customer production from the chip crunch, consolidated revenue jumped 15% to EUR 2.3 billion from EUR 2.0 billion last year but was 2% lower than consensus. Excluding favorable currency, organic revenue rose 10% versus a 12% increase in global light vehicle production. However, core organic revenue, excluding wind-down business lines, increased 15%, outperforming the market as the fourth quarter last year was hit harder by the chip crunch.