DSV Falls as HSBC Questions Profit Growth: Copenhagen Mover
DSV A/S (DSV) fell the most among Copenhagen’s benchmark stocks today after HSBC Holdings Plc said the Nordic region’s biggest trucking company may not be able to improve profits this year.
DSV dropped as much as 1.8 percent, making it today’s biggest loser on the Copenhagen 20 Index. The stock declined 1.4 percent to 136.80 kroner at 9:24 a.m. in the Danish capital, with trading volume at 17 percent of the three-month daily average.
DSV, based in Broendby, Denmark, this week reported first- quarter revenue and profits that missed analyst estimates and said market conditions had been “challenging.” HSBC today lowered it is recommendation on the stock to neutral from overweight and said DSV may not be able to meet its full-year forecast.
DSV’s 2013 outlook “is largely predicated on some economic recovery, of which we have yet to see evidence,” HSBC said in a note. “Lead indicators both in Europe and globally remain volatile, and we see risk to consensus and guidance.”
DSV reported on April 30 a first-quarter net income of 322 million kroner ($56.6 million), missing the average estimate of 363 million kroner in a Bloomberg survey of analysts. The company repeated its 2013 forecast of gross profit of as much as 10.5 billion kroner. In 2012, DSV reported a gross profit of 10.1 billion kroner.
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