Daimler Truck Stock: Unexpected Surge Despite Q3 Challenges

Daimler Truck's stock soared by over 6% on Thursday, reaching a five-month high of €40.48, despite reporting declining revenue and profit figures for the third quarter of 2024. This surprising upturn was attributed to the company's financial results surpassing analyst expectations, particularly due to a more resilient operating margin. While the European market showed weakness, robust North American sales bolstered the company's balance sheet. The unexpected positive development overshadowed a 5% decrease in revenue to €13.1 billion and a 12% reduction in adjusted EBIT to €1.19 billion.

Regional Disparities and Future Outlook

The truck manufacturer faced divergent regional dynamics, with European demand weakening, especially in Germany, leading to a nearly 25% decline in orders for the Mercedes-Benz segment. In contrast, North America exhibited slight growth. Responding to these challenges, management announced a new cost-saving and performance improvement program for the Mercedes-Benz division, with details expected in the first quarter of 2025. Analysts remain optimistic, setting an average price target of €52.88, indicating significant upside potential for the stock.