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Hapag-Lloyd shares up on strong Q3 results

Published 14/11/2024, 13:08
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HLAG
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Investing.com -- Shares of Hapag-Lloyd (ETR:HLAG) climbed over 4% on Thursday following its pre-release of strong third-quarter results, which exceeded market expectations. 

Hapag-Lloyd reported an EBITDA of $1.623 billion for the third quarter, surpassing the consensus estimate of $1.376 billion. 

The company also raised its full-year EBITDA guidance to a range of $4.6 to $5.0 billion, up from the previous $3.5 to $4.6 billion forecast.

Freight rates, a key driver, rose by 13% quarter-over-quarter, reaching $1,612 per TEU. 

This increase reflects Hapag-Lloyd's exposure to the Trans-Atlantic trade lane, which has benefited from resilient demand and improved spot rates out of Asia. 

Additionally, transport volumes grew 3.8% year-over-year, outpacing the industry consensus.

Barclays (LON:BARC) analysts highlighted that these gains come amid broader market headwinds, including softer-than-expected demand peaks. 

Yet, Hapag-Lloyd's positioning in high-demand routes allowed it to outperform. 

Despite the positive momentum, analysts at Barclays maintain an "underweight" rating, citing potential downside risks, including the sustainability of current freight rates and the broader macroeconomic environment.

“We do not expect any significant changes in FY consensus,” said analysts at Citi Research in a note. 

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