Healthcare company Merck KGaA (DE:MRK) and airline Deutsche Lufthansa (DE:LHA) will report their 2022 earnings this week.
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Here, we have used the TipRanks Earnings Calendar for Germany to screen for companies with upcoming earnings. The calendar provides all the required information, like earnings dates, forecast numbers, etc., about the companies. The data is available to investors in seven different markets.
Let’s have a look at these companies in detail.
Merck KGaA
A healthcare and technology company, Merck caters to the life sciences, healthcare, and electronics industries across 66 countries worldwide.
The year 2022 has been quite volatile for the company’s stock, which has lost more than 20% of its value.
The company will announce its Q4 and annual results for 2022 on March 2. According to TipRanks’ database, the forecasted EPS for the fourth quarter is €2.48 per share, as compared to €2.06 in the same quarter of 2021. The sales forecast for Q4 is around €5.72 billion.
In its third quarter, the company posted 16.8% growth in its sales, driven by its Drugs and Lab Equipment sectors. Earnings in the Electronics segment fell, and this trend is expected to continue in Q4. For the full year, Merck is expecting its adjusted EBITDA to be between €6.8-€7.2 billion.
Analysts remain bullish on the company’s Life Sciences unit, which supplies tools and equipment to companies. This segment contributed 46% to the company’s sales in the third quarter and is expected to increase further in Q4.
Merck KGaA Stock Forecast
MRK stock has a Moderate Buy rating on TipRanks. The stock has a total of nine recommendations, out of which seven are Buy.
The average price forecast is €212.88, which indicates an upside of 18.7% from the current price.
Deutsche Lufthansa AG (Lufthansa)
Lufthansa is among the largest airlines in Europe, with operations worldwide.
The company’s operations and its stock are in recovery mode after being hit by the travel shutdown during COVID-19. The stock has gained more than 50% in the last year.
The company will present its annual numbers for 2022 along with Q4 results on March 3. The consensus EPS forecast is €0.37 per share for the fourth quarter, which is a significant improvement over the negative EPS of €0.31 in Q4 2021.
In terms of revenues, the company posted an increase of 118% for the first nine months of 2022. Analysts still believe the company’s revenues will not be able to reach the pre-crisis level. However, the company raised its earnings forecast and now anticipates an adjusted EBIT of €1 billion in 2022. The passenger capacity already touched 70% of its 2019 levels and is expected to be at 75% for the full year 2022.
Are Lufthansa Shares a Good Buy?
According to TipRanks, LHA stock has a Hold rating, based on a total of 14 Buy recommendations. It includes five Buy, seven Hold, and two Sell ratings.
With 70% growth in the share price in the last six months, analysts don’t see any further upside at the moment.
The average target price is €9.2, which is 6.7% lower than the current trading price.
Conclusion
Between these two companies, analysts are more bullish on the stock of MRK. The company is witnessing huge growth in its Life Sciences unit and is also investing in new technologies to boost it.
LHA is recovering from a crisis period and is posting higher revenues and earnings. The stock price, on the other hand, doesn’t offer much room for growth to investors.
