Daimler’s 1Q22 results beat expectations and confirm guidance for the year

Daimler’s 1Q22 results beat expectations and confirm guidance for the year

Main figures compared to the Bloomberg consensus:

  • Unit sales reach 487,000 million (-9.6%)
  • Revenues 34,858 million euros (+6%) vs. 33,550 million euros estimated
  • EBIT 5,229 million euros (+11.2%) vs. 4,766 million euros estimated
  • BNA 3,490 million euros (-18.6%) vs. 3,297 million euros estimated

Opinion on the results of Daimler 

Figures that exceed consensus estimates . One more quarter confirms the Company’s pricing capacity . Vehicle sales fall close to -10% in the quarter penalized by the shortage of semiconductors, the new restrictions due to the outbreak of the virus and the war between Russia and Ukraine. However , revenues advance +6% and EBIT +11%. Production remains focused on premium models while the cost-cutting policy continues. With this, the EBIT margin of the car segment advances to 16.4% vs. 15.8% former .

The balance also continues to offer good news. The net cash position of the industrial business has advanced +8% since the end of 2021 (up to 22,706 million euros). In the future, the Company warns of a very high degree of uncertainty due to the war in Russia/Ukraine, the bottlenecks and the rise in the cost of raw materials and energy. Despite this, it confirms the guidance for the year as a whole . He estimates an EBIT for the car division of between 11.5%/13%, probably close to the upper threshold of the range. In short, good figures that should boost the share price today .

Daimler Recommendation 

Neutral  Recommendation with a Target Price of 73.3 euros.

Samuel Edwards
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that's what he is good at. From Major Investments to Stock Market Updates, he got 'em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.