Mercedes-Benz Group is set to release its second-quarter results on Thursday. Here are the key details you need to know:
According to 22 analysts polled by Factset, the German luxury-car maker is anticipated to report sales of around €38.49 billion ($42.55 billion). This estimate marks an increase compared to the €36.44 billion in sales recorded during the same quarter last year.
Factset suggests that earnings before interest and taxes (EBIT) for Mercedes-Benz are expected to reach €4.85 billion. This figure demonstrates growth from the €4.62 billion in EBIT reported a year ago.
What to Watch For
Vans Outlook Upgrade
Mercedes-Benz's van business achieved record-breaking performance in the first quarter, and this trend is expected to continue. Analysts at JP Morgan anticipate margins above 15% for the quarter, surpassing the business's upgraded year-end goal of 11%-13%. They further suggest that another upgrade within the range of 13%-15% is highly likely.
JP Morgan notes a debate on whether Mercedes-Benz's strategy of maintaining high prices at the expense of sales volume is the best defense against lackluster demand. While investors are looking at strong earnings and sales from its competitor, BMW, the analysts believe that the luxury strategy is the right approach to counter growing electric-vehicle competition.
Although Mercedes-Benz is expected to deliver robust top-line numbers, Deutsche Bank analysts caution that the margin may decline from the heights seen in the first quarter. This potential decrease is likely due to weakened tailwinds from residual values and raw materials.
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