By Adria Calatayud
DHL owner Deutsche Post is scheduled to report results for the third quarter on Wednesday. Here is what you need to know:
REVENUE FORECAST: The German logistics group, also known as DHL Group, is expected to report revenue of 20.845 billion euros ($22.34 billion), according to consensus numbers provided by the company. For the same period last year, it reported revenue of EUR24.04 billion.
EARNINGS FORECAST: The company’s earnings before interests and taxes are forecast to come in at EUR1.375 billion, according to the company-compiled consensus. This compares with the EUR2.04 billion Deutsche Post reported for the year-earlier quarter.
WHAT TO WATCH:
–GUIDANCE: The company expects EBIT for 2023 to range from EUR6.2 billion to EUR7.0 billion. However, the higher end of that range assumed a recovery from mid year, which didn’t happen, and this could lead the company to cut its own guidance to between EUR6.2 billion and EUR6.6 billion, Bank of America analysts Muneeba Kayani and Paul Kirjanovs said in a research note.
–DEMAND OUTLOOK: Peers such as United Parcel Service, Kuehne + Nagel International and DSV were downbeat about freight demand during recent earnings calls, the BofA analysts said. Macroeconomic uncertainty means DHL Group’s volumes next year are likely to be lower than previously assumed, with a return to growth now forecast to be weighted toward the second half, UBS analysts said in a note.
Write to Adria Calatayud at [email protected]
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