Daimler AG’s share price down, posts a third-quarter profit that surpasses initial analysts’ estimates on strong Mercedes-Benz unit’s performance

The third-biggest luxury vehicles manufacturer in the world – Daimler AG – made an official statement today that its profit over the third quarter of the current fiscal year increased by 21% due to larger deliveries of its Mercedes-Benz S-Class line.

The Chief Executive Officer of the company, Dieter Zetsche, said in the statement, cited by Bloomberg: “Our strategy is paying off. We are growing profitably and look to the future with optimism also beyond the full year.” As reported by the Wall Street Journal, Mr. Zetsche also added: “In all our divisions, both the product offensives and the efficiency programs are taking effect. We are confident that we will achieve the targets we have set on a sustained basis.”

According to the companys statement, the operating profit of Daimler increased from €2.3 billion a year ago, to €2.79 billion ($3.53 billion). This result surpassed the initial analysts forecasts pointing to €2.56 billion. The Mercedes-Benz Car units profit increased to 8.5% of revenue. The revenue of Daimler over the third financial quarter rose by 10% to reach €33.12 billion. The Germany-based car manufacturer reported earnings per share, which amounted to €2.56.

In addition, the company reported that its earnings growth was benefited by strong sales of its Mercedes-Benz division, and especially by the latters S-class sedans series and compact cars product line. The Mercedes-Benz brand was said by the company to have generated about 42% of Daimlers total earnings before interest and tax over the period.

As reported by Bloomberg, Frank Schwope, an analyst at NordLB, commented before the companys quarterly performance report was released: “Mercedes-Benz has a fresh model lineup, which is giving the brand a lot of momentum. We’ll probably continue to see more profitable quarters through most of next year.”

Daimler AG lost 1.46% to trade at €58.91 per share by 7:53 GMT, marking a one-year increase of 0.93%. The company is valued at €63.95 billion. According to the Financial Times, the 30 analysts offering 12-month price targets for Daimler AG have a median target of €75.00, with a high estimate of €86.00 and a low estimate of €54.00. The median estimate represents a 26.37% increase from the last price of €59.35.