Shares in Valeo have risen after the company confirmed its expectations for 2023 and reported higher sales for the third quarter. Valeo shares traded 6.5% higher at EUR12.42, recovering from Thursday’s losses after a peer company cut its guidance.
The French automotive supplier reported sales amounting to 5.22 billion euros ($5.51 billion) for the quarter, slightly lower than the same period last year when sales were at EUR5.26 billion. The decline can mainly be attributed to a 4.7% hit from currency movements. However, on a like-for-like basis, Valeo’s quarterly sales saw a 4% increase.
Guidance for 2023
Valeo has reiterated its guidance for 2023, which includes revenue expectations of between EUR22.0 billion and EUR23.0 billion and an operating margin of 3.2% to 4.0%. Analysts at Deutsche Bank Research believe that the confirmation of guidance and management statements on consensus could provide relief to the market, especially considering the weakness in Valeo’s shares leading up to the results.
Recent Stock Performance
Following the lowering of Plastic Omnium’s outlook, Valeo’s shares closed 5.1% lower on Thursday. This was primarily due to uncertainties surrounding global automotive production, including the impact of the U.S. strike and a slowdown in the production of electric vehicles. Despite the rise on Friday, Valeo’s stock remains down nearly 26% since the beginning of the year.