Deutsche Post’s quarterly profit jumped at the fastest pace in over four years after prices increased and deliveries on behalf of internet-based retailers rose. The stock gained to an eight month high.
Second-quarter operating profit surged 40 per cent to €752 million, beating the €737 million average of analyst estimates compiled by Bloomberg. The growth was the steepest since the fourth quarter of 2011.
Gains were propelled by rising parcel deliveries for online retailers and an increase in German postage rates for standard letters.
The Bonn-based mail operator reiterated its full-year profit forecast.
Deutsche Post, which also owns the DHL express and logistics brand, is betting that growth generated by electronic commerce will more than offset weakening letter volume, which it expects to fall by as much as 3 per cent per year.
“We expect momentum in the third quarter to remain strong”, helped by the express division, and the company may meet 2017 earnings estimates a year early, analysts at JandE Davy wrote in a report.
The company rose as much as 4 per cent and was trading up 3 per cent at €27.25 as of 9:28am in Frankfurt, heading for the highest close since late November. The stock has gained 5.1 per cent this year, valuing the company at €33.1 billion. –
