DE40: DAX in the historical highs zone 📈

• European indices continue upward wave
• German DAX clears the way to test the zone of historical peaks
• Quarterly results from Puma, BMW and Siemens Energy

Overall market situation:

The buyers' side is extending the wave of increases prevailing on European stock exchanges, which were largely initiated yesterday.The German DAX extends today's gains by 0.46% and thus paves the way to test the highest levels in history. On the corporate side, investors' attention today turns to the results of Siemens Energy, BMW and Puma. The macro calendar for today's session, on the other hand, is relatively empty and, apart from a number of speeches by Fed bankers, will not abound in publications of the highest importance. 

European companies traded during Wednesday's trading session are currently on clear gains. Source: xStation 5

Volatility currently observed in the DAX index. Source: Bloomberg Financial LP

Germany's benchmark DE40 is up 0.42% during today's session. What's more, the wave of growth with its range broke through the key barrier of 18,430 points, where we can see a double peak formation. Breaking through this zone could theoretically create the ground for DE40, to test the historical peaks near 18,800 points. In a slightly broader perspective, the index has been continuously moving in an uptrend since the first half of November 2023 (as evidenced by the exponential moving averages). For the moment, it seems that the most important support zone of the uptrend is the 50-day moving average (blue curve on the chart) and the previously mentioned zone of 18,430 points. Source: xStation 5

News:

Siemens Energy (ENR.DE) shares rose as much as 14% after the company released better-than-expected order results. The company also increased its guidance for the year.

FULL-YEAR FORECAST

• Comparable sales forecast +10% to +12%, forecast +3% to +7%
• Profit margin before special items -1% to 1%, -2% to 1%

SECOND QUARTER RESULTS

• Revenue €8.28 billion, +3.1% y/y, estimate €8.28 billion
• Gas services revenue €2.64 billion, -7% y/y, forecast €2.8 billion
• Grid Technologies revenue €2.20 billion, +26% y/y, forecast €2.08 billion
• Industry Transformation revenues €1.27 billion, +10% y/y
• Siemens Gamesa Renewable Energy revenue €2.31 billion, -5.1% y/y, estimate €2.42 billion
• Profit before special items €170 million vs. €41 million y/y, €40.7 million estimate
• Gas services profit before special items €381 million, +30% y/y, estimate: €306.4 million
• Grid Technologies profit before special items €250 million vs. €114 million y/y, estimate €198.9 million
• Industrial Transformation profit before special items €79 million, +8.2% y/y, €84.5 million estimate
• Siemens Gamesa Renewable Energy loss before special items €448 million, +20% y/y, estimated loss €514.4 million
• Orders €9.47 billion, -23% y/y, estimate €10.58 billion
• Net profit €108 million vs. loss €189 million y/y, estimated loss €29.9 million 
• EPS €0.08 vs. loss a year ago €0.25, estimate €0.05

Lower operating margins at BMW (BMW.DE) lifted the company's shares down nearly 3.5% today. For the full year, EBIT margins are expected to be between 8% and 10% (analysts expect 9%). 

FIRST QUARTER RESULTS

• Automotive EBIT margin 8.8% vs. 12.1% y/y, 9.05% estimate 
• Ebit €4.05 billion, -25% y/y, estimates €3.96 billion
• Sales 36.61 billion euros, -0.6% y/y, estimates 36.82 billion euros
• Automotive revenue €30.94 billion, -1.1% y/y, estimates €31.01 billion
• Financial services revenue €9.53 billion, +7.9% y/y, estimates €8.93 billion
• Motorcycle revenue €872 million, -6.5% y/y, estimates €866.9 million
• Motorcycle Ebit margin 12.2% vs. 16.5% y/y, estimates 13.6%
• Vehicle deliveries 594,533 units, +1.1% y/y, estimates 598,497

Puma (PUM.DE) publishes better-than-expected quarterly results and reaffirms its full-year outlook. JP Morgan analysts point to higher margins, which are pleasing given the difficult y/y comparative base. The trends themselves, according to the bank, may even improve in the second part of the year. The company continues to forecast EBIT of between €620 million and €700 million (analysts expect €657 million).

FIRST QUARTER RESULTS

• Net income €87.3 million, -25% y/y, estimates €80.1 million
• Sales €2.10 billion, -3.9% y/y, estimates €2.1 billion
• Sales in EMEA €855.7 million, -3.2% y/y, estimates €849.2 million
• Sales in the Americas €790.0 million, -4.6% y/y, estimate €776.1 million
• Sales in Asia-Pacific €456.6 million, -4.1% y/y, estimate €476.2 million
• Footwear revenues €1.18 billion, -2.4% y/y, estimated €1.17 billion 
• Apparel revenue €608.1 million, -6.1% y/y, estimated €624.3 million
• Accessories revenue €312.7 million, -5.1% y/y, €316.4 million estimate
• Gross profit margin 47.5% vs. 46.5% y/y, 47.2% estimate
• Net profit €159 million, estimate €153.8 million
• EBIT margin 7.6% vs. 8% y/y, estimate 7.42%
• Profit before tax €132.2 million, estimate €122.3 million
• EPS €0.58 vs. €0.78 y/y, estimate €0.52
• Operating expenses €845.3 million, -0.3% y/y, estimates €848.5 million

Other incoming information from German companies. Source: Bloomberg Financial LP

Analyst action: 

• JP Morgan raised its rating on TeamViewer (TMV.DE) shares to “neutral.” The target price was set at 13.5 euros per share. 
• Barclays raised its rating on Lufthansa (LHA.DE) shares to “overweight.” Target price set at €9 per share.