DHL Group Q3 Results: Key Details and Forecasts

DHL owner Deutsche Post will be releasing its third-quarter results on Wednesday. Here are the key details:

Revenue Forecast

Consensus numbers provided by the company suggest that the German logistics group, also known as DHL Group, is expected to report revenue of 20.845 billion euros ($22.34 billion). This is compared to last year's revenue of EUR24.04 billion.

Earnings Forecast

According to the company-compiled consensus, the earnings before interests and taxes (EBIT) are forecasted to be EUR1.375 billion. In the same quarter last year, Deutsche Post reported earnings of EUR2.04 billion.

What to Watch For

Guidance

The company initially expected an EBIT range of EUR6.2 billion to EUR7.0 billion for the year 2023. However, Bank of America analysts Muneeba Kayani and Paul Kirjanovs suggest that due to the lack of a recovery in the mid-year, the company may cut its guidance to a range between EUR6.2 billion and EUR6.6 billion.

Demand Outlook

United Parcel Service, Kuehne + Nagel International, and DSV expressed pessimism about freight demand during recent earnings calls, according to BofA analysts. Given the macroeconomic uncertainty, UBS analysts predict that DHL Group's volumes next year will be lower than previously anticipated, with growth expected to primarily occur in the second half.