- DAX under downward pressure in the first phase of the session
- Adidas publishes preliminary results for the third quarter
General market situation:
Wednesday's session on European stock markets brings declines in most stock indexes. Germany's DAX is currently losing 0.45%. Britain's FTSE 100 is gaining more than 0.6% at the same time. The French CAC40, meanwhile, is down 0.6%. Investors' attention today turns to corporate news (Q3 earnings season, including results from ASML and LMVH; for more information, see our earlier posts).
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Volatility currently observed in the broad European market. Source: xStation
Germany's benchmark DE40 is trading nearly 0.28% lower during Wednesday's session and is breaking out below historical highs. It seems that the key support/resistance points of the broad uptrend remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak just broken out, which is now the main control zone for the supply and demand sides. Source: xStation
News:
Adidas (ADS.DE) shares are losing nearly 3%, despite the company releasing better-than-expected (preliminary) results for Q3 2024.
ANNUAL FORECAST
- Operating profit of about €1.2 billion, previously estimated at about €1.0 billion, analysts expected €1.13 billion
- Currency-neutral revenue growth at a rate of about 10%, previously estimated to grow at a high single-digit rate.
PRELIMINARY THIRD QUARTER RESULTS
- Preliminary gross margin 51.3%, estimates 50.5%
- Preliminary operating profit €598 million, estimates €558.6 million
- Preliminary revenue €6.44 billion, estimate €6.45 billion
COMMENTS
- Operating profit in the third quarter, including a contribution of about €50 million from the sale of some of Yeezy's remaining inventory.
- In its forecasts, the company assumes that it will sell its remaining Yeezy inventory in the remainder of the year at cost on average. This would result in additional sales of about €50 million and no further profit contribution in the fourth quarter.
- Full-year guidance was raised to reflect better-than-expected results in the quarter and the brand's current momentum.
Shares of German airline Deutsche Lufthansa AG (LHA.DE) were fined $4 million by the U.S. Department of Transportation for allegedly discriminating against Jewish passengers who were ejected from a flight, the largest penalty imposed by the agency on a carrier for civil rights violations.
Other news coming from individual companies in the DAX index. Source: Bloomberg Financial LP
