LONDON (Reuters) -Shares in Renault jumped on the Tradegate platform early on Thursday after the French carmaker posted full-year 2023 net profit slightly below forecasts but reported margin and revenue gains and a huge dividend increase.
Renault was last up 6.1% on Tradegate from its 37.69 euro closing price on Wednesday.
Late on Wednesday the company said it would propose a dividend of 1.85 euros ($1.98) for 2023, up from 0.25 euros for 2022, joining U.S. automakers Ford and General Motors in giving more cash to investors.
Renault posted an operating margin of 7.9%, up from 5.5% in 2022. The company said it expected an operating margin of about 7.5% this year and stood by its target of double-digit margins by 2030.
“Investors will be looking out for any more details on Renault’s plan to sell more Nissan shares in 2024, and how they plan to use that cash,” Bernstein analysts said.
“We would be keen to understand where management sees demand for the current year … and what gives them confidence to expect a decent performance.”
Meanwhile, rival Stellantis on Thursday warned of a “turbulent” year ahead after operating profit fell 10% in the second half, hit by strikes affecting operations in North America.
(Reporting by Amanda CooperEditing by David Goodman)
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