Maersk Expected to Post Higher Revenue on Strong Terminals, Logistics Performance

Dow Jones
08/12
 

Denmark's A.P. Moller-Maersk is scheduled to report results for the second quarter on Thursday. Here is what you need to know:

 

REVENUE FORECAST: The shipping company is expected to post revenue of $14.26 billion, up from $13.13 billion a year earlier, according to a Visible Alpha consensus.

 

EARNINGS FORECAST: Earnings before interest, taxes, depreciation and amortization are forecast at $2.13 billion, down from $2.3 billion a year earlier.

 

NET PROFIT FORECAST: The company's net profit is expected to be $507 million compared with $586 million, according to the same consensus.

 

Share traded 0.9% higher at 17,115 Danish kroner in afternoon trade in Europe. Shares are up 17% in the year to date.

 

--In the short term, things should be going well for the shipping company, as it stands among the best in the industry considering its cheap pricing, strong balance sheet, high proportion of volume under contract, Jyske Bank senior analyst Haider Anjum said in a note. However, long-term investors should be cautious on the prospect of an early normalization in the Red Sea, he added. Maersk continues to derive the majority of its revenue from the ocean division, where dynamics are expected to remain unfavorable for some time, he added.

--Second-quarter results for Maersk are expected to reflect solid volume growth and a strong performance in both terminals and logistics, the analyst said. A strong export boom out of China, especially to the surrounding Asian countries, but also Europe, is expected to drive growth in the ocean division, he said.

 
 

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