Daimler To See Fall In Revenue For 4th Consecutive Quarter?

by Trefis Team
Daimler AG
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Daimler AG (OTCMKTS: DDAIF), the German auto giant engaged in the development, production, and distribution of cars, vans, trucks, and buses is set to announce its Q2 2019 results on July 24, 2019, followed by a conference call with analysts. The market expects the company to report revenue close to $47 billion in Q2 2019, which would be a decrease of 3.2% y-o-y. The decrease is mainly expected due to the global auto market slowdown and pricing. Market expectation is for the company to report earnings of $1.60 per share in Q2 2019, lower than $1.81 per share in the year-ago period as the company is expected to start its path to recovery.

Daimler AG’s Revenues were reported at $190.7 billion in in 2018. This included 5 revenue streams:

  • Mercedes Benz Cars: $100.1 billion in 2018 (52.5% of Total Revenues). This includes income from sales of Mercedes Benz cars globally.
  • Mercedes Benz Vans: $14.7 billion in 2018 (7.7% of Total Revenues). This includes income from sales of Mercedes Benz vans globally.
  • Daimler Trucks: $41.1 billion in 2018 (21.6% of Total Revenues). This includes income from sales of Daimler Trucks globally.
  • Daimler Buses: $4.9 billion in 2018 (2.6% of Total Revenues). This includes income from sales of Daimler Buses globally.
  • Financial Services: $29.9 billion in 2018 (15.7% of Total Revenues). This includes revenue from the financial services provided for purchasing or leasing vehicles of the company.


We have summarized our key expectations from the earnings announcement in our interactive dashboard – Daimler AG’s Earnings: Performance and 2019 Forecast. In addition, here is more Consumer Discretionary data.


Key Factors Affecting Earnings:

Revenue expected to fall:

  • Daimler AG has seen a fall in total revenues over the recent quarters due to the global auto market slowdown. The revenue reported in Q4 2018 was $46.6 billion and In Q1 2019 the revenue was reported at € 39.7 billion ($ 44.9 billion) as sales volume was down by 4% y-o-y.
  • Mercedes-Benz Cars segment saw a fall in revenues due to pricing in 2018 even when total numbers of cars sold were higher than the previous year. In 2019 we expect the pricing to stabilize and volume to increase steadily and consequently report revenue around $103.2 billion.
  • Daimler Trucks segment was the only silver lining for the company recording a growth of revenue in 2018 even after a fall in pricing. We estimate the high growth rate to continue and record a revenue of around $44.5 billion.

Trend in Expenses:

  • Total Expenses have moved in relation to Total revenue as the Cost of Sales (highest contributor) has increased from being 79.1% of Total revenue in Q1 2017 to 80.9% of Total revenue in Q1 2019.
  • Net Income was affected by a lot of cost headwinds in 2018 like foreign exchange rates, Governmental proceedings, measures relating to diesel vehicles, product mix, and Inflation-related cost. In 2019 the company expects a slight improvement over the previous year.

Full Year Outlook:

  • For the full year, we expect gross revenue to increase by 2.2% to $195 billion in 2019 as sales are expected to pick up in later half of the year.
  • Gross Profit margin is expected to decrease to around 25.9%.

Trefis has calculated Daimler AG’s Valuation at $73 for Daimler AG’s stock. Expectations of better pricing and margins are expected to improve profitability and, in turn, work as a tailwind for the company’s stock price.



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