AP Moller-Maersk shares rise on strong quarterly earnings
The shipping giant reported better-than-expected profits, driven by higher freight rates and operational efficiency gains.
AP Moller-Maersk shares surged on Tuesday after the Danish conglomerate posted stronger-than-anticipated quarterly earnings, citing robust freight rates and operational improvements.
The company reported a net profit of $1.2 billion for the quarter, up from $850 million a year earlier, beating analyst expectations of $950 million. Revenue rose 12% to $11.3 billion, supported by sustained demand in global trade and disciplined capacity management.
Maersk’s logistics and container shipping divisions both contributed to the outperformance, with the latter benefiting from tight vessel availability and reduced congestion at major ports. Chief Executive Soren Skou highlighted that freight rates remained elevated despite easing supply chain bottlenecks, while cost controls helped offset inflationary pressures.
Analysts at Jefferies upgraded the stock to 'Buy' from 'Hold,' citing the company’s resilience in a volatile shipping market. The upgrade followed a similar move by Goldman Sachs, which raised its price target to $220 from $195. Shares of Maersk were up 4.5% in Copenhagen trading, outpacing the broader European transport index.
The company maintained its full-year guidance, reaffirming expectations for adjusted earnings before interest and taxes (EBIT) of $6 billion to $7 billion, reflecting confidence in sustained demand despite macroeconomic uncertainties.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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