- DAX extends declines
- SAP profit up after Q3 earnings release
- AP Moller Maersk raises forecasts for EBITDA this year
Overall market situation:
Tuesday's session on European stock markets brings declines in most stock indexes. Germany's DAX is currently losing 0.41%. Britain's FTSE 100 is losing more than 0.71% at the same time. The French CAC40, meanwhile, is losing 0.85%. Investors' attention today turns to corporate news (SAP results and AP Moller Maersk forecasts) and speeches by central bankers.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.52% lower during Tuesday'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:
SAP (SAP.DE) shares are gaining 3.5%, hitting a new record high, after the company beat third-quarter earnings expectations and raised some elements of its full-year forecast. The company reported a significant year-on-year improvement in cloud revenue.
ANNUAL FORECAST
- Cloud and software revenues: 29.5 billion euros to 29.8 billion euros, previously estimated range between 29.0 billion euros to 29.5 billion euros, analysts expected 29.46 billion euros
- Operating profit between 7.8 billion euros to 8.0 billion euros, previously estimated range between 7.6 billion euros to 7.9 billion euros, analysts expected 7.84 billion euros
- Free cash flow between 3.5 billion euros to 4.0 billion euros, previously estimated around 3.5 billion euros, analysts expected 3.72 billion euros
THIRD QUARTER RESULTS
- Revenue of €8.47 billion, analysts expected €8.45 billion
- Cloud and software revenue €7.43 billion, analysts expected €7.36 billion
- Gross profit 6.24 billion euros, analysts expected 6.24 billion euros
- Gross margin 73.6%, analysts expected 73.1%
- Operating profit €2.24 billion, analysts expected €2.06 billion
- Profit after tax €1.44 billion, analysts expected €1.23 billion
- Earnings per share €1.23, analysts expected €1.20
- Free cash flow €1.25 billion, analysts expected a negative figure of €677 million
SAP shares break out to new historic highs. Source: xStation
A.P. Moller-Maersk (MAERSKA.DK) raised its full-year outlook for the fourth time in less than six months, citing stronger demand and higher freight rates due to supply chain disruptions caused by attacks in the Red Sea. Maersk now expects EBITDA to be between $11 billion and $11.5 billion this year, topping both its previous forecast range and the $10.1 billion average of analysts' estimates. Despite this, the company's shares are losing 1%, as bank analysts report that rates could fall in the future due to easing tensions in the Middle East.
This is Maersk's fourth forecast increase this year. Source: Bloomberg Financial LP
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
