Vitesco Earnings: Q4 Results Were Mixed; Merger and Electrification Highlight 2024 Guidance

Narrow-moat-rated Vitesco reported fourth-quarter loss per share of EUR 1.56, below the EUR 2.44 FactSet consensus and last year's EUR 0.29. The primary reason for this reported loss included an unusually large tax burden due to accounting effects that pertain to the planned merger with Schaeffler AG. Consolidated revenue fell below EUR 2.3 billion from above EUR 2.3 billion a year ago and was 3% lower than consensus. Excluding currency headwinds, organic revenue rose 1% versus a 9% increase in global light vehicle production. Core organic revenue, excluding wind-down business lines, increased 6.2%, which also underperformed the market.