Continental AG

CON: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€522.00	Ypsrlt	Gvpxhslk

Continental Earnings: Weak Start to the Year, but Guidance Maintained

Matthew Donen

May 8, 2024

Narrow-moat Continental published results for first-quarter 2024 and hosted a call on May 8 following the disappointing preliminary headline financial figures released on April 17. Consolidated revenue of EUR 9.8 billion and adjusted EBIT margin of 2% fell short of company-compiled consensus at EUR 10 billion and 3.7%, respectively, and the share price fell after the announcement. Continental cited unfavorable mix, foreign-currency headwinds, and continued labor inflation as contributors to the poor quarter. There was no redeeming element in either release, with automotive, tire, and ContiTech businesses all missing estimates. Despite this, management reiterated full-year guidance.

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