Renault Earnings: Unfavorable Currency Dents Revenue Growth but Turnaround on Track

No-moat-rated Renault reported third-quarter group revenue of EUR 10.5 billion, up 8% from the prior year on an as-reported basis, but, excluding unfavorable currency translation, revenue jumped 14%. The top-line result beat the FactSet consensus revenue estimate by 2%. Automotive revenue was 5% higher, but excluding currency, improved 11% year over year. The “Renaulution” turnaround plan to improve pricing and mix supported roughly 7 percentage points of the automotive revenue increase. Volume improved 6% on a 22% increase in France and 12% in the rest of Europe. Geographic mix and sales to partners contributed 3 percentage points to revenue growth while sales to partners also added 3 percentage points. The French automaker discloses only revenue in the first and third quarters while full financial statements are reported for the half and full year.