Daimler Truck Stock: Unexpected Surge Despite Q3 Decline

Daimler Truck's stock soared by over 6% on Thursday, reaching a five-month high of €40.48, despite reporting a decline in revenue and profit for the third quarter of 2024. This surprising upturn followed the release of quarterly figures that surpassed analyst expectations. While the European market showed weakness, robust North American sales bolstered the company's balance sheet. The stock's performance caught analysts off guard, who had anticipated more significant losses. The unexpected positive reaction from investors was attributed to a more resilient operating margin than forecast, overshadowing the 5% revenue drop to €13.1 billion and the 12% decrease in adjusted EBIT to €1.19 billion.

Regional Disparities and Future Outlook

The company faced contrasting regional dynamics, with European demand, particularly in Germany, faltering as the Mercedes-Benz segment witnessed an order decline of nearly 25%. Conversely, North America demonstrated slight growth. In response to these challenges, management announced plans for a new cost-saving and performance enhancement program for the Mercedes-Benz division, with details expected in the first quarter of 2025. Analysts maintain an optimistic outlook, setting an average price target of €52.88, suggesting significant upside potential. The next quarterly results, anticipated on March 20, 2025, may provide further momentum for the stock.