Volvo AB Reports Decrease in Profit and Revenue for Q4

Volvo AB's latest report reveals a net profit drop, signaling concerns for investors. The decrease in earnings and revenue could influence market reactions and stock performance.

Date: 29-01-2025

AI Rating: 4

Profit Analysis: Volvo AB reported a profit of SEK10.742 billion for the fourth quarter, a drop from SEK12.053 billion last year. This signifies a negative trend in profitability.

Earnings Per Share (EPS): The EPS also decreased to SEK5.28 from SEK5.93 in the previous year, indicating lower returns for shareholders.

Revenue Growth: The company's revenue fell by 6.5%, from SEK147.988 billion last year to SEK138.413 billion this year. This drop is concerning and reflects a decline in sales performance.

Segment Performance: In the Trucks segment, sales were reported at SEK 95.478 billion, which is lower than last year's SEK 99.896 billion. This reduction further highlights the overall decline in sales and could negatively impact investor confidence.

Dividend Proposal: On a positive note, Volvo proposed an ordinary dividend of SEK 8 per share and an extra dividend of SEK 10.50 per share for the full year 2024. This may appeal to investors despite the disappointing earnings and revenue figures.

Stocks: VOLVY