(News Bulletin 247) – Mercedes-Benz gained nearly 2% on Friday on the Frankfurt Stock Exchange following the publication of preliminary results that exceeded expectations for the first quarter.
The title of the German automaker gained 1.7%, leading the DAX index and second in the Eurozone’s Euro STOXX 50 behind EssilorLuxottica.
The group reported Tuesday evening an operating profit up to 5.5 billion euros in the first three months of the year thanks to good performance in its light utility division.
The publication pleasantly surprised analysts, who were expecting a result of around 4.8 billion.
Mercedes says it benefited from the strength of its prices in an environment described as ‘difficult’, in particular due to the increase in production costs.
The margin of its Mercedes-Benz Vans utility arm reached 15.6%, against a consensus of 13.1% provided by the company, while its Mercedes-Benz Cars passenger car division generated a margin of 14, 8% also higher than the consensus of 13.4%.
‘The investment case is even bolstered by the fact that Mercedes’ portfolio barely rivals those of BYD and Tesla, meaning pricing pressures could remain limited in the second half of the year’ , underline the analysts of Stifel.
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