Daimler AG Q3 2017 Earnings Preview

by Trefis Team
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Daimler AG will announce its Q3 2017 results on October 20th 2017 and its Mercedes-Benz segment is likely to be the key sales driver for the company in this quarter.

Daimler is increasing its focus on electric cars and announced recently that Mercedes-Benz will offer electric versions of all its models by 2022. (Read Here’s Why Daimler Is Looking To Offer Electric Versions Of All Mercedes-Benz Models). According to our estimates, Mercedes-Benz  cars account for more than 50% of the company’s revenues and China is a key market for these cars. In Q2 2017, the company registered a 28% year on year growth in China for its Mercedes-Benz segment. The brand is poised for further growth in the region and focusing on clean energy by launching electric versions of these vehicles is likely to be a key growth driver for the company in the long term. We will be keenly watching the performance of this segment in Q3 2017.

Click here for our detailed revenue forecast for Daimler AG.

Below is a summary of consensus analyst expectations for revenue and EPS (earnings per share) for Daimler for Q3 2017:

Source: Yahoo Finance

Demand for Daimler’s trucks is likely to remain subdued in 2017, however the company witnessed a 4% increase in sales in the NAFTA region in Q2 2017, despite weak overall investment. Daimler expects a slight increase in unit sales of its trucks in 2017 on the back of its strong market position. The company is also starting production of its electric trucks this year in limited volume. Its first commercial partner in the U.S. for these trucks will be UPS, which already operates alternate fuel vehicles. Daimler will provide electric trucks to UPS on a two-year lease basis. This new vehicle has the potential to become a long term growth driver for the company.

We would be keenly watching Daimler’s sales in its Mercedes-Benz segment especially the growth in China and the revenues from the truck segment in the company’s Q3 2017 results.

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