- 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.
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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
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