- European indices trade higher on Wednesday
- DE40 tests 18,000 pts area
- Zalando surges 14% on 2023 results and strong guidance
European stock market indices are trading higher today, responding to the upbeat session on the Old Continent yesterday. German DAX trades 0.2% higher, UK FTSE 100 adds 0.1% and French CAC40 jumps 0.5%. German DAX futures broke to fresh all-time highs and tested the 18,000 pts mark for the first time in history. When it comes to individual stocks, Zalando deserves a note as company's stock rallies 14%, following release of solid 2023 results and strong guidance.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDAX futures (DE40) managed to recover from a correction that occurred at the end of the previous week and climbed to fresh all-time highs yesterday. Taking a look at DE40 chart at 30-minute interval, we can see that the advance was halted in the 18,000 pts area, and bulls have struggled to revive it later on. Nevertheless, a narrow bullish channel can be painted, with the index painting a sequence of higher highs and lows. Having said that, a clear break above the 18,000 pts mark cannot be ruled out later today or this week. A potential near-term resistance level to watch can be found in the 18,078 pts area, and is marked with the 161.8% exterior retracement of the last week's correction.
Company News
Zalando (ZAL.DE) reported a 1.9% YoY drop in 2023 revenue to €10.14 billion (exp. €10.16 billion), as well as 1.1% drop in gross merchandise volume (GMV) to €14.63 billion (exp. €14.66 billion). However, company managed to greatly improve its profitability with adjusted EBIT jumping 90% YoY to €349.9 million (exp. €324.2 million), and adjusted EBIT margin improving from 1.8% in 2022 to 3.5% in 2023 (exp. 3.2%). Net income increased from €16.8 million in 2022 to €83 million in 2023. Company expects 2024 revenue and GMV to be flat to 5% higher, compared to 2023 levels. 2024 adjusted EBIT is seen at €380-450 million (exp. €391 million). Zalando targets compound annual growth rate of revenue and GMV of 5-10% through 5-10% and expects adjusted EBIT margin of 6-8% in 2028.
Rheinmetall (RHM.DE) signed a contract with Spanish government to supply country's military with 94.2 thousand 155mm artillery shells. Contract is valued at €208 million and deliveries will take place between the end of 2024 and the end of 2025.
E.ON (EOAN.DE) said it will boost investments in Europe by about 30% in the next 5 years, bring expected investments to €42 billion by 2028. Company said that around 70% of this value will be allocated to projects in Germany, with focus on energy networks and energy infrastructure solutions. E.ON invested around €6.4 billion in 2023, what marked an increase of around a third compared to 2022. E.ON expects adjusted EBITDA to reach €8.8-9.0 billion this year and increase to over €11 billion by 2028.
Kloeckner (KCO.DE) reported 2023 EBITDA at €190 million, slightly lower than €199.6 million expected. Dividend per share was declared at €0.20 - above market expectations of €0.15 per share payout. Company expects a considerable increase in shipments and sales, and forecasts Q1 2024 EBITDA of €30-70 million, compared to €43 million in EBITDA in Q1 2023.
Zalando (ZAL.DE) surges today, following release of solid 2023 earnings and upbeat 2024 guidance. Stock jumps around 14% higher on the day and trades at the higher level since the second half of December 2023. A near-term resistance zone to watch can be found ranging around €24.50 handle. However, bulls would have to climb above 200-session moving average (purple line) first in order to reach this area. Source: xStation5
