Investing.com - Daimler Truck Holding (ETR:DTGGe) posted strong 2023 earnings Friday and raised its dividend while announcing a share buyback program, resulting in sharp share price gains.
At 04:40 ET (09:40 GMT), Daimler Truck stock traded over 13% higher at €42.88, over 25% higher year-to-date.
The German truck maker reported earnings before income tax of €5.5 billion for 2023, up from €4 billion euros a year, saying it would buy back E2 billion euros worth of shares over the next 24 months.
It also proposed a dividend of €1.9 per share for 2023, up from €1.3 euros a year earlier.
“ We’ve aligned our strategy to lead the sustainable, emission-free transport of the future. And we’re diligently executing this strategy – step by step, or rather: truck by truck and bus by bus,” said Chairman Martin Daum.
Citi keeps its buy rating on the company, with a 12-month price target of €39.80.
The Mercedes-Benz (OTC:MBGAF) unit reported “surprisingly strong margin both for 4Q and looking to the FY guide,” said Citi analysts, in a note. ”Also there are implied market share gains embedded into the guidance.”
The “stock has been pretty strong into the print and we will seek clarity on the call about the big ASP (average selling price) surprise and margin surprise at MB.”