Analyst Note| Richard Hilgert |
Narrow-moat rated Continental reported first-quarter earnings per share of EUR 2.24, beating the EUR 1.37 FactSet consensus by EUR 0.87 and EUR 0.78 higher than the EUR 1.46 reported a year ago. Consolidated revenue increased 3.5% to EUR 10.3 billion from EUR 9.9 billion last year. However, excluding currency effect, organic revenue increased 8.6%, due to vehicle electrification products in the powertrain group as well as electronic displays in the vehicle networking and information group. Continental expects the powertrain spin-off (to be called Vitesco) in September 2021. Excluding Vitesco, organic revenue underperformed global markets by roughly 2 percentage points while Vitesco outperformed by 4 percentage points.