Shares in Deutsche Post saw a decline on Tuesday as the company adjusted its earnings guidance for 2023, which, at its mid-point, fell below consensus expectations. Additionally, the company reported lower second-quarter earnings and revenue.
At 0828 GMT, shares in Deutsche Post were down 4.7% at EUR44.53.
Deutsche Post, the parent company of DHL, now expects its 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), compared to its previous guidance of EUR6.0 billion to EUR7.0 billion.
Prior to the announcement, analysts had anticipated Deutsche Post’s 2023 EBIT to be around EUR6.73 billion, according to consensus estimates from the company. This is higher than the mid-point of the updated guidance range, which is EUR6.6 billion.
While this revised guidance may disappoint those who held more optimistic views on the stock, it is worth noting that it falls below market expectations and has negative implications for sentiment, according to analysts at Citi. However, the Citi analysts do not expect consensus estimates to be significantly impacted by this update.
In terms of the second quarter results, Deutsche Post reported a 27% decrease in EBIT to EUR1.69 billion. This decline was observed across all divisions except supply chain. Quarterly revenue also dropped by 16% to EUR20.09 billion, primarily due to lower volumes and a normalization in freight rates within the company’s global forwarding operations. Currency effects further contributed to a reduction of EUR669 million in the group’s revenue for the quarter.
Based on company-provided consensus, analysts had initially predicted EBIT to be at EUR1.65 billion and revenue at EUR21.65 billion for the quarter.