Earnings Alerts

AP Moeller – Maersk A/S (MAERSKB) Earnings: Surpassing Estimates with Revised FY Outlook

By October 21, 2024 No Comments
  • Maersk has increased its forecast for the full-year underlying EBITDA to a range of $11.0 billion to $11.5 billion, previously expected to be between $9 billion to $11 billion. Estimates were around $10.14 billion.
  • The new forecast for underlying EBIT is set between $5.2 billion to $5.7 billion, up from the earlier estimate of $3 billion to $5 billion. The previous estimate stood at $4.14 billion.
  • Global container trade is expected to grow by 6%, compared to a previous forecast of 4% to 6% growth.
  • Preliminary third-quarter results show an EBITDA of $4.8 billion, surpassing the estimate of $3.63 billion.
  • Preliminary EBIT for the third quarter is $3.3 billion, beating the estimated $2.29 billion.
  • Revenue for the third quarter is preliminarily reported at $15.8 billion, exceeding the estimated $14.75 billion.
  • Maersk attributes the upgraded outlook to strong third-quarter results and robust container market demand, alongside the ongoing Red Sea situation.
  • The company anticipates a full-year 2024 free cash flow of at least $3 billion.
  • Analyst recommendations include 12 buys, 9 holds, and 8 sells for Maersk.

AP Moeller – Maersk A/S on Smartkarma

Analyst coverage of AP Moeller – Maersk A/S on Smartkarma reveals a mixed sentiment among independent analysts. Daniel Hellberg‘s research highlights the surprising decline in revenue and EBITDA for Maersk in Q224, despite the industry’s soaring spot container rates. However, the company has adjusted its guidance upwards for FY24, indicating strategic shifts in managing spot exposure. On the other hand, Hellberg notes the resilience of container shipping pricing and volume growth, although recent fluctuations in spot rates have led to the closure of certain trade suggestions.

In a contrasting view, Hellberg also emphasizes the impact of geopolitical events on the container shipping industry, noting that a potential Israel-Hamas ceasefire may not immediately lower container rates. As the peak Summer shipping season unfolds and spot rates drive contract rate increases, the industry faces both uncertainty and opportunity. Despite challenges, including geopolitical tensions, Maersk and other container carriers have demonstrated resilience and growth potential throughout 2024, as indicated by Hellberg’s analysis.


A look at AP Moeller – Maersk A/S Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth2
Resilience4
Momentum2
OVERALL SMART SCORE3.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

AP Moeller – Maersk A/S, a conglomerate with diversified holdings, is positioned favorably for long-term success based on its Smartkarma Smart Scores. With top ratings in both the Value and Dividend categories, the company demonstrates strength in providing solid returns to investors while maintaining financial stability. Additionally, its Resilience score highlights its ability to weather economic fluctuations effectively, adding to its attractiveness as a long-term investment.

While AP Moeller – Maersk A/S shows room for improvement in the Growth and Momentum categories, the overall outlook remains positive due to its strong foundation and robust performance in key areas. As a global player with interests in various industries such as shipping, oil exploration, and industrial operations, the company’s diversified portfolio further enhances its long-term prospects and attractiveness to investors seeking stability and consistent returns.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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