Analyst Note| Richard Hilgert |
Narrow-moat rated Veoneer, supplier of advanced driver assistance systems, reported third-quarter losses per share of $0.84, just $0.03 shy of the FactSet sell-side consensus of an $0.81 loss per share. Even though COVID-19 recovery improved year-ago results and the microchip shortage made customer production sporadic this year, the company posted a $0.34 per share reduction in losses compared with a $1.18 per share loss last year. The company has withdrawn guidance and did not host a conference call with analysts due to the ongoing process whereby SSW and Qualcomm will acquire the company. For additional details about the acquisition, please see our Veoneer notes dated July 23, Aug. 5, and Oct. 4. Because Veoneer agreed to be acquired for $37 per share, we raised our fair value estimate to the offer price. On a standalone basis, our fair value would be $27.