Covestro Q3 2022 Results: Revenue Beats Expectations, EPS Lags

Covestro (ETR:1COV) Third Quarter 2022 Results

Main financial results

  • Revenue: €4.62bn (+7.3% compared to 3Q 2021).
  • Net income: €12.0m (down 98% compared to 3Q 2021).
  • Profit margin: 0.3% (compared to 11% in the 3rd quarter of 2021).
    • The lower margin was driven by higher expenses.
  • EPS: €0.063 (compared to €2.44 in the 3rd quarter of 2021).
XTRA: 1COV Earnings and Revenue Growth October 30, 2022

All figures shown in the table above are for the 12 month period (TTM)

Covestro revenue beats expectations, EPS falls short

Revenue beat analysts’ estimates by 5.5%. Earnings per share (EPS) missed analysts’ estimates by 79%.

Going forward, revenues are expected to increase by an average of 1.2% per year over the next 3 years, while revenues from the chemical industry in Germany are expected to remain stable.

Performance of the German chemical industry.

Shares of the company are down 3.8% from a week ago.

Risk analysis

You should always think about the risks. Concrete example, we spotted 2 warning signs for Covestro you should be aware.

Valuation is complex, but we help make it simple.

Find out if Covestro is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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