Analyst Note| Richard Hilgert |
No-moat Daimler reported first-quarter earnings per share of EUR 4.01, EUR 0.43 better than the EUR 3.58 FactSet consensus EPS estimate and up EUR 3.92 from EUR 0.09 EPS reported a year ago. First-quarter total volume increased 13% with recovery in most of Daimler’s markets, especially China, which entered COVID-19 lockdowns much earlier than other regions. Consolidated revenue increased 10% to EUR 41 billion from EUR 37 billion in the prior year. First-quarter group adjusted EBIT was EUR 5.0 billion for an impressive margin of 12.1% versus EUR 719 million and a margin of 1.9% reported last year. The 3-star rated shares of Daimler currently trade at a 10% discount to our EUR 82 fair value estimate.