Porsche Earnings: Solid Revenue Growth but Higher Costs Slightly Ding Margin

Narrow-moat-rated Porsche reported third-quarter earnings per share of EUR 1.29, EUR 0.09 less than the EUR 1.38 FactSet consensus estimate and down EUR 0.01 from proforma EUR 1.30 last year. Consolidated revenue rose 10% to EUR 9.7 billion from EUR 8.8 billion a year ago despite a slight 0.4% decline in unit volume to 75,368 from 75,652 in the prior year. Favorable pricing and mix were partially offset by currency. Revenue was slightly better than the consensus by 1%. Due to the time value of money since our last update, we raised our fair value estimate by EUR 2 to EUR 92. The 3-star-rated shares of Porsche currently trade at 6% discount to our new fair value.