Investing.com -- Shares of DSV A/S (CPH:DSV) inched up 0.5% despite the company reporting a fourth-quarter group EBIT approximately 8% below consensus expectations. The logistics company’s earnings before interest and taxes (EBIT) for the quarter were DKK 3,936 million, falling short of the anticipated DKK 4,276 million. The full-year EBIT also hit the lower end of the provided guidance range of DKK 16-17 billion.
The shortfall was attributed to a combination of factors, including gross profit being nearly on target at DKK 10,788 million against a consensus of DKK 10,965 million, and a lower than expected gross profit to EBIT conversion rate of 36.5%, compared to the 39.0% that was anticipated.
Notably, the Road segment experienced a 26% miss in EBIT, reporting DKK 311 million versus the consensus of DKK 420 million, which was impacted by ongoing market weakness and one-off events such as receivables write-off. The Solutions segment also underperformed, with an 18% EBIT miss, recording DKK 531 million against a forecasted DKK 646 million, primarily due to new warehouse operations affecting average utilization.
Looking ahead, DSV A/S has set its 2025 EBIT guidance at DKK 15.5-17.5 billion, excluding potential contributions from DB Schenker. This forecast is roughly 6% below the midpoint consensus of DKK 17.6 billion. The company’s outlook is based on an assumption of a 3% growth in the Air & Sea market, alongside market share gains and stable to slightly declining yields.
On a positive note, the Air & Sea segment reported an EBIT of DKK 3,103 million, only 3% below the consensus of DKK 3,215 million and better than internal estimates. The gross profit for this segment was in line with expectations, and Air & Sea yields remained flat quarter over quarter, aligning with projections.
The company’s report did not include any updates on the ongoing acquisition process of DB Schenker, leaving investors without new information on this front.
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