How to trade Volkswagen and BMW quarterly earnings results based on history

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Using data going back to past 20 quarters, CNBC Pro found how well each carmaker's stock performs against their benchmarks based on different outcomes.

German carmakers Volkswagen and BMW are set to announce their first-quarter earnings later today. The results come at a time of an improving growth environment for both companies. BMW last month, in its annual report, said the automaker remains on track for slightly higher sales this year despite a dip in demand in the first quarter, including in the Chinese market.

VOW3 beat its benchmark 41% of the time when it reported better-than-expected EPS for the quarter. The stock also surpassed the benchmark by 5.4 percentage points a week since the results and 6.5 percentage points a month out under the same scenario. VOW3 was up 6.12% to 123.32 euros at midday London time on Wednesday. Analysts expect Volkswagen to report 6.93 euros EPS, according to figures compiled by FactSet. The consensus price target of all analysts point toward a 24.

 

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