Daimler Truck share: price explosion after earnings report

Last Updated: 1. März 2024By

The Daimler Truck share has literally exploded after the publication of the business figures. The stock reached a high of 43 euros in today’s morning trading, which is more than 13 percent higher. Since mid-January, the Daimler Truck share has brought a gain of around 35 percent to the price board (as of March 1, 2024, around 11 am).

It remains to be seen how the stock will develop in the coming weeks based on the new all-time high. However, investors overall showed confidence in the numbers – including the EBIT development, the sales margin in the industrial business (excluding financial services), and the raised dividend. But despite all the euphoria, there are also question marks regarding the declining order intake.

Daimler Truck with strong figures in 2023 Despite Daimler Truck selling hardly more vehicles in 2023 than the previous year, revenue was significantly increased by around 10 percent. With 55.89 billion euros, it was within the forecast range. The profit and margin looked even better.

With a very strong fourth quarter, adjusted EBIT climbed to around 5.49 billion euros. This is a whopping 39 percent more than the previous year. The adjusted sales margin rose to 9.9 percent, which is at the upper end of the company’s forecast of 8.5 to 10.5 percent.

Daimler Truck: Outlook for 2024 and higher dividend After selling around 526,000 units (trucks and buses) in 2023, Daimler Truck plans to sell significantly fewer this year. Sales are expected to be between 490,000 and 510,000 vehicles. Nevertheless, revenue in 2024 is expected to be between 55 and 57 billion euros, and adjusted EBIT is expected to reach the level of the previous year.

Important for investors: Due to the record numbers in 2023, the company plans to significantly increase the dividend: At the Annual General Meeting, the management and supervisory board of Daimler Truck will propose a dividend of 1.90 euros per share – the last one was 1.30 euros. Based on the current price, this is a dividend yield of around 4.4 percent.

Daimler Truck share: Strong margin development, but fewer orders Despite the good mood, investors should not forget that Daimler Truck will sell fewer vehicles this year. Order intake fell by 21 percent in the fourth quarter and amounted to „only“ just under 427,000 units in the entire year 2023. However, the company attributes this to normalizing markets and the „absence of catch-up effects.“

Despite these conditions, Daimler Truck plans to achieve record levels for revenue, EBIT, and margin again in 2024. After the numbers, analysts are also overall optimistic – and certainly not without good reason. In the medium term, investors should keep an eye on the margin targets and the development of order intake.

Source: https://aktienscreener.com/