DAX40 – Quarterly Results From Porsche, Deutsche Bank And Rheinmetall in the Spotlight

General market situation:

European indices are gaining during Tuesday’s session. The German DAX on the cash market is currently adding 0.6% while the French CAC40 is losing 0.32%.

The economic calendar for today’s session focuses on JOLTS data from the US and API survey data from the same country. On the corporate side, quarterly data from companies such as Visa and Booking Holdings will be the number 1 topic.

Distribution of today’s returns for European companies. Source: xStation

The German DE40 index is gaining 0.21% today on an intraday basis. The contract is holding above the 50-day EMA (blue line) and completely erasing the massive declines that started on April 2. From a technical perspective (exponential EMA), the DE40 is resuming its upward trend. Source: xStation

News:

Very good sentiment is being felt today by arms stocks. Rheinmetall (RHM.DE) shares rose 6% following the company’s strong quarterly results.

PRELIMINARY RESULTS FOR THE FIRST QUARTER

• Sales €2.31 billion, estimated €1.95 billion
• Preliminary operating profit €199 million
• Preliminary operating margin 8.7%

FULL YEAR OUTLOOK

• Operating margin still expected to be around 15.5%, estimated 15.7%
• Sales still expected to increase by +25% to +30% year-on-year

Analysts at Bloomberg Economics said they see greater potential for growth in earnings estimates given that Rheinmetall has maintained its 2025 forecast.

The company’s shares are regaining ground and hovering around historic highs. Source: xStation

Porsche AG (P911.DE) shares are down as much as 6.5% after the luxury carmaker issued another profit warning. The German company faces a number of challenges, including U.S. tariffs and higher costs stemming from poor adoption of electric vehicles. The company said its profit margin is expected to fall to single digits this year.

2025 FORECAST

• Operating return on sales of 6.5% to 8.5%, previously expected 10% to 12%, analysts expected 9.36%
• Revenues of €37-38 billion, previously expected around €39-40 billion, estimated €38.7 billion
• EBITDA margin in the automotive sector of 16.5% to 18.5%, expected 19-21%
• Share of electric vehicles in the automotive sector of 20-22%
• The negative impact of the US import tariffs in April and May has been factored into the revised forecast
• The forecast does not include further effects of the US tariffs

The company’s shares started today’s trading with a downward gap. Source: xStation

Investors are also focusing on the results of Deutsche Bank (DBK.DE), which turned out to be very good. Bank confirms earnings forecasts for 2025. Shares gain 3.7%.

QUARTER RESULTS

• FIC sales and turnover revenues EUR 2.90 billion, estimated EUR 2.73 billion
• Common equity Tier 1 ratio 13.8% vs. 13.4% y/y, estimated 13.8%
• Net income EUR 8.52 billion, +9.6% y/y, estimated EUR 8.3 billion
• Asset management income EUR 730 million, +18% y/y, estimated EUR 693.3 million
• Investment banking income EUR 3.36 billion, +10% y/y, estimated EUR 3.29 billion
• Private banking income EUR 2.44 billion, +2.7% y/y, estimated EUR 2.45 billion
• Corporate banking income EUR 1.87 billion, -0.6% y/y, estimated EUR 1.92 billion
• Profit Net EUR 1.78 billion, +39% y/y
• Earnings before tax EUR 2.84 billion, +39% y/y, estimated EUR 2.63 billion
• Adjusted costs EUR 5.10 billion
• Credit loss provision EUR 471 million, +7.3% y/y, estimated EUR 401.2 million
• Non-interest costs EUR 5.22 billion, -1.7% y/y, estimated EUR 5.31 billion

Other news from German companies. Source: Bloomberg Financial LP

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.