BMW Earnings: Revenue Growth and Profitability Disappoint but 2023 Guidance Raised

Narrow-moat BMW reported second-quarter earnings per share of EUR 4.40, missing the EUR 4.68 FactSet consensus EPS estimate by EUR 0.28 but up EUR 0.09 from the EUR 4.31 reported last year. Automotive volume increased 11% as the chip crunch lessened with all regions reporting gains. Despite higher sales volume, automotive revenue rose a disappointing 5% as favorable pricing and mix were offset by negative currency, especially the RMB, USD, and JPY. Consolidated revenue increased 7% to EUR 37.2 billion from EUR 34.8 billion on the 5% automotive increase with motorcycle revenue up 14% and an 18% rise in financial services. Group revenue beat the FactSet consensus by about 1%.