- DE40 drops ahead of Wall Street open
- Rheinmetall optimistic about outlook for new year
Overall market situation:
Thursday's trading session on European markets brings mixed sentiment The German DAX is currently losing close to 0.1%, the French CAC40 is adding 0.6% and the Euro Stoxx 50 benchmark is down 0.23%. Investors in Europe are reacting today to incoming quarterly results from European companies and PPI data from the US, which surprised with a higher-than-expected reading.
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European companies traded mostly down during Monday's trading session today. Source: xStation 5
The German benchmark DE40 is recording declines of nearly 0.1% during today's session. Thus, the index is descending into the consolidation zone observed for nearly two days. The main support level worth observing still remains the 50-period exponential moving average (blue curve, H4 interval). Source: xStation 5
News:
MorphoSys (MOR.DE) reported fourth-quarter revenues that were below average analyst estimates. The company's shares are losing nearly 0.5% in today's session.
FOURTH QUARTER RESULTS
- Revenue €59.0 million, estimated €60.8 million
- Net sales of Monjuvi US products €24.1 million
- Operating loss €81.4m, estimated loss of €80.9m
- Net profit €48.3 million, -85% y/y
- Royalty income €34.0m, estimated €33.7m
COMMENTS
- It expects the group's R&D expenditure to be between €170 million and €185 million in 2024. Selling, administrative and general expenses are expected to be between €90 million and €105 million
- In 2024, the Group expects R&D expenditure of between €170 million and €185 million.
Rheinmentall's (RHM.DE) shares are gaining nearly 5% during today's session following the presentation of the earnings report. Investors were particularly pleased with the improved forecasts for the new year.
ANNUAL FORECAST
- Company targets sales of around €10 billion, estimates €9.59 billion
- Operating margin of 14% to 15%, estimate 14.4%.
2023 RESULTS
- Operating profit €918 million, estimate €924.5 million
- Dividend per share €5.70 vs. €4.30 y/y, estimated €5.10
- Sales €7.18bn, +12% y/y, estimated €7.47bn
- Sales of vehicle systems €2.61bn, +15% y/y, estimated €2.74bn
- Sales of arms and ammunition €1.85bn, estimated €2.01bn
- Sales of electronic solutions €1.23 billion, estimated €1.23 billion
- Sales of sensors and actuators €1.42 billion
- Operating margin 12.8%, estimated 12.4%
- Profit after tax €586 million
COMMENTS
- The Rheinmetall Group expects a significant increase in sales and expects a growing operating margin coupled with an improved operating result in fiscal 2024.
- This would be a big increase compared to fiscal 2023, in which Rheinmetall has already reported sales growth of 12% to more than €7 billion, driven by vehicle systems and weapons and ammunition units.
Chemicals companies also presented their results: Lanxess (LXS.DE) and K+S (SDF.DE)
Lanxess results:
Q1 FORECAST
- Expects revised Ebitda to €100 million, estimated €124.4 million
Q4 RESULTS
- Sales €1.44 billion, forecast €1.58 billion
- Adjusted Ebitda €97 million, estimate €94.9 million
- Adjusted Ebitda margin 6.8%, forecast 6.15%
- Net loss €753m, estimated loss €192.8m
K+S results:
ANNUAL FORECAST
- Projected Ebitda €500m to €650m, estimate €624.8m
2023 RESULTS.
- Ebitda €712m, -71% y/y, forecast €691.6m
- Dividend per share €0.70, forecast €0.76
- Revenues €3.87 billion, -32% y/y
- Adjusted net profit 162 million euro, -89% y/y, estimate 178.1 million euro
Other news about individual companies included in the DAX index. Source: Bloomberg Financial LP
Analyst recommendations:
- RBC initiated analyst coverage for Carl Zeiss Meditiec (AFX.DE) with an "outperform" rating. The target price for the company's shares was estimated at €150. The analysts communicated that the company is predicting a 10.6% CAGR in revenue by 2027.
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