Deutsche Post Shares Fall After Upgraded Guidance Disappoints

By Adria Calatayud

Shares in Deutsche Post fell Tuesday after the company raised its earnings guidance for 2023 to a range that, at its mid-point, falls short of consensus expectations, and reported lower second-quarter earnings and revenue.

At 0828 GMT, shares in the DHL parent were down 4.7% at EUR44.53.

The German logistics group said it now expects earnings before interest and taxes for the full year to be between 6.2 billion and 7.0 billion euros ($6.82 billion-$7.70 billion), against its previous guidance of EUR6.0 billion to EUR7.0 billion.

Ahead of the results, analysts had expected Deutsche Post's 2023 EBIT to be EUR6.73 billion, according to consensus estimates provided by the company. This is higher than the mid-point of the updated guidance range, of EUR6.6 billion.

The company's revised guidance is likely to disappoint those who had more optimistic views on the stock, given that it is below market expectations and negative for sentiment, analysts at Citi said in a research note. Consensus estimates are unlikely to move significantly after the update, the Citi analysts said.

For the second quarter, Deutsche Post reported a 27% fall in EBIT to EUR1.69 billion, with declines in all the group's divisions except supply chain.

Quarterly revenue was 16% lower at EUR20.09 billion, dragged down the company's global forwarding operations, which took a hit from lower volumes and a normalization in freight rates. Currency effects reduced the group's revenue by EUR669 million in the quarter, it said.

Analysts had forecast EBIT at EUR1.65 billion and revenue at EUR21.65 billion for the quarter, according to the company-provided consensus.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

August 01, 2023 05:25 ET (09:25 GMT)

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