Investing.com -- Shares of Renault (EPA:RENA) jumped on Thursday following its third-quarter results, which beat estimates.
At 3:54 am (0754 GMT), Renault was trading 4.5% higher at €42.06.
The company reported sales of €10.7 billion for the quarter, beating the company's own consensus of €10.4 billion.
“We would focus on the fact new product performance is driving top-line acceleration, total inventory is under control with 2m order backlog giving management confidence that strong product mix can continue further,” said analysts at Morgan Stanley in a note.
Despite facing a slight decline in vehicle registrations, Renault managed to limit dealer de-stocking, contributing positively to their results.
The results also reflected a healthy product mix, with new models across both the Renault and Dacia brands bolstering sales.
“Given the underperformance of the sector and warning from almost all other OEMs, Renault has clearly executed exceptionally well and has beaten low expectations,” said analysts at Citi Research in a note.
The company maintained its full-year guidance, targeting an operating margin of at least 7.5% and free cash flow of over €2.5 billion.
Inventory levels are reported to be under control, with Renault holding 528,000 units, and a two-month order backlog indicates strong demand for their vehicles.
“This is somewhat higher than the 490k we had forecast, which obviously supports 2H 24 EBIT,” said Citi Research.