BMW BAMXF projects 2023 deliveries to be slightly higher and its EBIT margin to range between 8 and 10%, ahead of the rollout of its new electric fleet this year.
The company released its full-year 2022 result last week, according to which it registered an EBIT margin and cash flow for its automotive segments of 8.6% and EUR11.1 billion, respectively. As a result, it hiked its dividend to EUR8.5 per share this year, up from EUR5.8 per share in the previous year.
The German carmaker also announced its intent to maintain car prices at a stable level after years of passing on input costs to customers’ pockets.
The rollout of the new premium models and BEVs is expected to be the dominant growth driver for BMW. By 2026, BMW expects one in every three cars sold to be all electric and by 2030, it expects 50% of the cars sold to be all electric. For 2023, the company plans to increase its BEV share to 15%.
By 2025, the carmaker plans to deliver 2 million fully electric vehicles and by 2030 the number of deliveries would increase to 10 million. The first electric vehicles of BMW’s MINI brand are scheduled to enter the market this year. The company is planning to invest $1.7 billion in its U.S. operations to develop auto vehicles and batteries.
Earlier this year, the company introduced a fleet of hydrogen vehicles and envisions starting production in the second half of the decade. Chief executive Oliver Zipse said, “We see hydrogen-electric vehicles as a meaningful complement to e-mobility, even with something of a time lag." The automaker has also started testing its Hydrogen vehicle that comes with a range of 500 km and capability to refuel in 3-4 minutes, in different countries.
Zacks Rank & Key Picks
BMW currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space are Mercedes-Benz Group AG MBGAF, Bridgestone BRDCY and Wabash National WNC, all of which sport a Zacks Rank #1.
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 4.02%.
Bridgestone is a Japanese tire manufacturer. The Zacks Consensus Estimate for BRDCY’s 2023 sales and earnings implies year-over-year growth of 0.24% and 11.24%, respectively.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 28.89%, respectively.
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