How Did Volkswagen Shares React to Quarterly Report?
It’s now the turn of the German auto concern Volkswagen AG to boast its results of Q1, 2021. How are car sales going in Europe and Asia? Has the level of electric car sales increased? How did the shares behave after the report? I’m sure you’re eager to know the answers. Let’s get down to business, then.
Volkswagen report for Q1, 2021
On May 6th, the German car giant reported its financial results for January-March, 2021. During these months, the company sold 2.4 million cars. Compared to the results of the same period last year, the increase amounts to 21%.
Note also an increase in electric car sales: during the first three months of 2021, VW sold 133,000 electric vehicles. This is 100% more than last year
Moreover, sales of German cars in the Chinese market are, indeed, impressive. Compared to Q1, 2020, they leaped up by 61.4%. Analysts explain this noticeable difference by the tough restrictions and severe quarantine due to COVID-19 last year.
Important details of the report:
- Revenue - €62.38 billion, +13.3%.
- Return on stock - €6.45, +726%.
- Net profit - €3.41 billion, +560%.
- Operational profit - €4.46 billion, +554%.
Tech analysis of Volkswagen shares
On May 6th, after the report for January-March, 2021 was presented, the stock price of Volkswagen (VOWG) dropped by 0.83% to €261.8. When this material was being prepared, the quotations changed direction: they grew by 0.61%, reaching €263.4 per share.
Analyst Maksim Artyomov about the perspectives of the company:
“While the quarterly revenue of Volkswagen (VOW.D) is growing, the shares of the company keep falling. On D1, the last trading session was “won” by sellers. February through mid-March, the quotations were growing, but as the growth of the price was too abrupt, market players started taking the profit, which dragged the price down. Now the price remains above the 200-days Moving Average, which, in turn, increases the chances for further growth.
The trading situation has two ways of further development. Option one: the quotations keep correcting to €220, test the support level, and bounce off it to the resistance area around €300. Option two: the quotations break through the resistance line and head for €300 avoiding correction.
Anyway, the company is the leader of the car and accessory market, so we can be almost sure that the quotations are likely to resume growth in the nearest future”.
Latest news about Volkswagen
At the end of April, the US SEC started an investigation of the company’s affairs. The regulator is checking whether the actions of the concern were rightful. As you remember, on April Fool’s day, the company joked that it is changing the name of its US department for Volkswagen, which made its stock price grow by 12.5%.
The information about the renaming seemed quite true to investors and experts after the company’s management announced in March that they were planning to conquer the electric car market. Yes, I mean, they promised to supply 1 million electric cars in 2021 and create a network of six European plants producing batteries by 2030.
Volkswagen AG reported its results of Q1, 2021: the revenue grew by 13.3%, and the net profit – by 560%. Sales volume increased by 21%, specifically electric car sales – by 100%. The Chinese market results were especially cheering: sales there grew by 61.4%.
However, the market reacted by a decline in the quotations. It was minor but noticeable compared to such impressive statistics.
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