The stock of Continental has been predominantly sideways-oriented lately – exactly 6 months ago the paper was trading at around 64 euros, as it is in the morning trading today (Status: November 9th, around 9.30 AM). On the positive side, yesterday the DAX corporation presented its quarterly report, which was overall convincing.

Although Conti once again cut its turnover forecast for the current year, the company nonetheless increased its profitability. And the trend for automotive suppliers is also on the rise. In the long run, there is still a lot possible with the Continental stock, but whether this was the much-anticipated turnaround is yet to be seen.

Continental with mixed figures in Q3 On the plus side of the latest quarterly report from Continental is clearly the development of profit and margin. The adjusted EBIT rose by 7.1 percent compared to the same quarter of the previous year to about 637 million euros. The EBIT margin was also higher than the 5.7 percent of 2022 at 6.2 percent, and the company earned 299 million euros in Q3.

Revenues, on the other hand, could not keep up. Also under the influence of unfavorable exchange rate effects, the quarterly turnover decreased by 1.5 percent to 10.4 billion euros. In this context, Conti has also reduced its turnover forecast for the current year – instead of the previously targeted 41.5 to 44.5 billion euros, the revenues should now land between 41 and 43 billion euros.

Continental stock: These are the first steps What should especially give investors confidence is on the one hand the much improved result in the previously weak automotive sector (automotive suppliers). On the other hand, the overall improved profitability. The company explains the positive development with better cost discipline, fewer problems with supply chains and price increases.

The turnover forecast once again revised downwards, however, shows that at Conti not everything is going according to plan. Investors are therefore already looking ahead to 2024 – here the DAX company has so far not dared any outlook. No big leaps are to be expected in the coming quarters. But: If the sustainable turnaround succeeds, the Continental stock also has medium and long-term catch-up potential.