Volkswagen Earnings: Solid Revenue Growth but Margin Improvement Dented on Headwinds

No-moat Volkswagen reported third-quarter earnings per share of EUR 7.76, beating the EUR 7.07 FactSet consensus by EUR 0.69 and up EUR 0.63 from the EUR 7.13 reported last year. Consolidated revenue rose 12% to EUR 78.8 billion from EUR 70.7 billion a year ago and 3% higher than consensus. Industrial revenue increased 9% on solid pricing, mix, and volume partially offset by output disruption (chips, logistics, flooding in Slovakia), negative currency effect, while consolidated deliveries increased 14% to 1.5 million versus 1.3 million last year when the chip crunch was worse.