By Carlo Martuscelli

 

Shares of Renault S.A. (RNO.FR) slumped Friday following a cut to its revenue forecast.

The French car maker said late Thursday that it expected revenue to fall by between 3% and 4% in 2019. This comes after a previous cut to revenue forecasts in July.

Renault also lowered its outlook for its operating margin to around 5%, compared with a previous forecast of around 6%.

Renault shares at 0804 GMT fell 7.05 euros ($7.83), or 13%, to EUR47.81.

Acting Chief Executive Clotilde Delbos attributed the weakened expectations to soft trading in July and August, which wasn't compensated for in September.

Furthermore, research expenses haven't come down as quickly as the company had expected, pressuring its operating margin, Ms. Delbos said.

Analysts at U.S. bank Jefferies said that while the guidance downgrades won't come as a surprise, their magnitude does. Meanwhile Deutsche Bank downgraded the company to a hold rating from buy and said that there is the risk that the situation doesn't improve next year.

 

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com; @carlomartu

 

(END) Dow Jones Newswires

October 18, 2019 04:27 ET (08:27 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Renault (EU:RNO)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Renault Charts.
Renault (EU:RNO)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Renault Charts.