- DAX halts declining momentum
- Hermes, Beiersdorf and Michelin results in the background
Overall market situation:
Thursday's session on European stock markets brings gains for most stock indexes. Germany's DAX is currently gaining 0.62%. Britain's FTSE 100 is adding more than 0.74% at the same time. France's CAC40, meanwhile, is gaining 0.75%. Investor attention today turns to corporate news (Hermes, Beiersdorf and Michelin results) and PMI data.
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Volatility currently observed in the broad European market. Source: xStation
Germany's benchmark DE40 is trading nearly 0.77% higher during Thursday's session. The key support/resistance points of the broad uptrend appear to remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak tested last week, which now serves as the main control zone for the supply and demand sides. Source: xStation
News:
Shares of Beiersdorf (BEI.DE) are gaining nearly 3.6% in today's session after the company reported strong results for the past nine months. Organic sales rose 6.5% year-on-year, while sales alone totaled €55 billion, up 4.1% year-on-year.
Michelin (ML.FR) shares are down 6% after the French tire maker lowered its full-year operating profit target, despite raising its free cash flow forecast.
ANNUAL FORECAST
- Total operating profit at constant exchange rates ~€3.4 billion, previously the result was estimated at €3.5 billion, analysts expect €3.49 billion
- Adjusted free cash flow above €1.7 billion, earlier result estimated at €1.5 billion
9-month results:
- Revenues €20.17 billion, -4.6% y/y
- Automotive revenue €10.36 billion, -2.4% y/y
- Road transport revenues €4.93 billion, -4.6% y/y
Hermes (RMS.FR) shares are up 2% after the French luxury goods maker reported sales growth above estimates, signaling that companies serving the richest end of the customer spectrum are coping with a slowdown in the luxury goods market. Analysts at CIC Markets comment that growth is now being driven mainly by price increases and much less by volume growth.
RESULTS FOR Q3
- Sales at constant exchange rates +11.3%, estimated +10.5%
- Sales of leather goods at constant exchange rates +14%, estimated +12.8%
- Revenue from watches at constant exchange rates -18.2%, estimated -9%
- Revenue from perfumes at constant exchange rates +10.6%, estimated +7.86%
- Revenue from silk and textiles at constant exchange rates +4%, estimated -1.36%
- Revenues from ready-to-wear and fashion at fixed exchange rates +13.5%, estimated +12.4%
- French revenue at constant exchange rates +13.1%, estimate +9.44%
- Europe's income at fixed exchange rates +17.4%, estimate +13.3%
- Japan's income at fixed exchange rates +22.8%, estimate +20%
- Asia-Pacific revenue at fixed exchange rates +1%, estimates +2.3%
- Asia's revenue at fixed exchange rates +4.6%, estimates +5.24%
- Americas revenue at fixed exchange rates +13.4%, estimate +12.3%
- Revenue €3.70 billion, +10% y/y, estimate €3.68 billion
Other news coming from individual companies in the DAX index. Source: Bloomberg Financial LP
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