German insurance company Allianz (DE:ALV) and automobile giant Mercedes-Benz Group (DE:MBG) will announce their Q4 and full-year earnings on Friday. Analysts believe Allianz will deliver revenue growth because of its growth in the property and casualty businesses. Mercedes, on the other hand, will be able to drive its earnings through higher EV sales and better cost control.
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Let’s have a look at these companies in detail.
Allianz is an insurance company based in Germany with a global presence in more than 70 countries. The company offers various products and services in the insurance and asset management segments.
The company will report its preliminary annual results for 2022 on February 17, 2023. The annual results for 2022 will be released on March 3, 2023. The consensus EPS forecast is €5.08 per share for the fourth quarter, which is a big improvement over the negative EPS of €0.74 in the same quarter of the previous year.
Allianz posted an operating profit of €6.7 billion in its half-yearly results for 2022. For the full year, the company is on track to meet its operating profit outlook of €13.4 billion. According to analysts, the company will deliver a net profit of €2.03 billion for the fourth quarter, as compared to a net loss of €292 million in the same quarter a year ago.
In terms of revenues, the company is expected to post higher numbers, driven by its property and casualty segment. This segment could post a growth of 9.7% in its revenues of 15.91 million over the last year’s Q4. Analysts also expect some pressure on the company’s margins due to high inflation rates, which could affect the combined ratio. For the first half of 2022, the company’s combined ratio was 94.1%.
Is Allianz Stock a Good Investment?
According to TipRanks’ rating consensus, ALV stock has a Moderate Buy rating. The stock has a total of 12 recommendations.
The average price forecast for Allianz is €243.07, which shows an upside of 10.3% from the current price.
Mercedes is a leading automobile company in Germany that manufactures and supplies luxury vehicles worldwide.
The company will release its annual results for 2022 on February 17. According to analysts, the forecasted EPS for Q4 will be €3.28 per share. This number is much lower than the EPS of €11.82 per share declared in Q4 2021, which showed a growth of 263%. This was due to the company’s high profitability and the successful spin-off of Daimler Truck Holding AG (DE:DTG).
The company is optimistic about its full-year numbers for 2022, which will be driven by its focus on cost efficiency, an effective supply chain, and high demand for its electric vehicles (EVs). The company is targeting to shift its base to all-electric by 2030 and plans to invest €40 billion for the same.
For the full year 2022, the company expects its RoS (return on sales) to be between 13% and 15%. The RoS for its Vans segment is expected to be in the 9%-11% range. The total revenues are expected to be “significantly above” the numbers of 2021.
Is Mercedes Benz a Good Buy?
Ahead of its earnings, Bernstein and J.P Morgan have reiterated their Buy ratings.
As per the TipRanks database, the Mercedes stock has a Strong Buy rating, based on 11 Buy recommendations.
The average target price of €83.23, implies an upside of 14.11% on the current price.
Analysts are bullish on the upcoming earnings as well as the share price growth of these two companies.