DE40: Rheimentall/Porsche shares in the session spotlight💡

General market situation: European markets are trading higher during Wednesday's trading session. The German DAX on the cash market is adding almost 1.7% (the DE40 contract is gaining 1.13%). Today, investors' attention is turning to the annual results of Rheinmetall and Porsche, as well as CPI data from the US. Any information about the negotiations between the US, Ukraine and Russia may prove equally important.

On the broader European market, we are seeing increases in the prices of shares of most companies representing the main sectors of the economy. Source: xStation

The German DE40 index is gaining 1.0% today on an intraday basis. The most important support for the index remains the 50-day EMA (blue line on the chart) and the support area of ​​the consolidation zone at almost 21,230 points. Technically, DE40 is still maintaining a stable upward trend. Source: xStation

Corporate News:

Rheinmetall (RHM.DE) shares are up nearly 8% today after the arms company reported its full-year 2024 financial results and published its 2025 forecasts. 

Key figures published by the company:

• Revenue: EUR 9.75 billion (EUR 10 billion forecast)

• Operating profit: EUR 1.48 billion (EUR 1.49 billion forecast)

• Operating margin: 15.2% (EUR 14.8 billion forecast)

• Dividend per share: EUR 8.10 (EUR 7.70 forecast)

• Sales growth forecast for fiscal year 2025: +25% to +30%

• Operating margin forecast for fiscal year 2025: ~15.5% (16.1% forecast)

The outlook presented above does not yet take into account the improvement in market potential, which is expected to occur in markets of particular importance to Rheinmetall in Europe, Germany and Ukraine as a result of geopolitical events in recent weeks.

The company's shares are breaking out to new historical highs after the publication of the results. Source: xStation

Porsche (P911.DE) shares are down nearly 3.8% today, despite the company posting slightly better-than-expected financial results. However, the stock is still under pressure from margins, which are low due to the challenging macro environment.

2024 RESULTS

• Operating profit EUR 5.64 billion, -23% y/y, forecast EUR 5.55 billion
• Net cash flow from automotive EUR 3.7 billion, forecast EUR 3.22 billion
• Revenue EUR 40.08 billion, -1.1% y/y, forecast EUR 39.41 billion
• Operating return on sales 14.1% vs. 18% y/y, forecast 14.1%
• Dividend per preferred share EUR 2.31 vs. 2.31 y/y
• Dividend per ordinary share EUR 2.30 vs. 2.30 y/y, forecast EUR 2.14

ANNUAL FORECAST

• Revenue EUR 39 billion to EUR 40 billion, forecast EUR 39.78 billion
• Operating return on sales 10% to 12%, 13% forecast
• In the longer term, the company assumes that the group's operating return on sales will be above 20%. In the medium term, Porsche is aiming for 15% to 17% due to the persistently difficult macro environment (previously estimated at least 19%).

Shares hover around their lowest levels in history. Source: xStation

More news from individual DAX companies. Source: Bloomberg Financial LP