DSV jumps after raising guidance

Investing.com -- Shares of DSV A/S (OTC:DSDVY ) (CSE:DSV ) jumped on Friday after the Danish logistics giant raised its full-year guidance and pre-released third-quarter results that were in line with expectations.

At 4:21 am (0821 GMT), DSV A/S was trading 6.2% higher at DKK 1,498.

The company now anticipates adjusted EBIT for 2024 to be in the range of DKK 16 to 17 billion, up from its previous forecast of DKK 15.5 to 17.0 billion. 

“We do not expect any revisions in the consensus,” said analysts at Citi Research in a note.

The upward revision has boosted investor confidence, particularly as DSV’s third-quarter adjusted EBIT landed around DKK 4.4 billion, aligning with both analyst estimates and the company’s expectations. 

The improved full-year outlook is seen as a positive signal, especially with the company moving forward on its major EUR 14.3 billion acquisition of DB Schenker. 

DSV also announced plans to raise DKK 37.3 billion through the issuance of new shares. The offering, which will take place via a directed issue and private placement with an accelerated bookbuilding process, is fully underwritten. 

Net proceeds from the capital raise will be directed towards partially financing the DB Schenker deal. This deal is expected to boost DSV’s market position and operational scale, making the financing move a critical step in its expansion strategy.

DSV securing DKK 21 billion in cornerstone commitments from key stakeholders has provided strong backing for the company’s capital raise. 

If the DB Schenker acquisition goes through, it would rank among the largest deals in the logistics industry, further cementing DSV's status as a global leader.

Source: Investing.com