DSV jumps after increasing guidance from Investing.com

Investing.com — Shares of DSV A/S (OTC:) (CSE:) rose 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 percent higher at DKK 1,498.

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

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

The upward revision boosted investor confidence, especially as DSV’s adjusted EBIT in the third quarter reached approximately DKK 4.4 billion, in line with both analyst estimates and company expectations.

The improved outlook for the full year is seen as a positive sign, particularly as the company moves forward with its major €14.3bn acquisition of DB Schenker.

DSV also announced plans to raise DKK 37.3 billion by issuing new shares. The offering, which will take place through a directed issue and private placement with an accelerated book-building process, is fully guaranteed.

The net proceeds from the capital increase will be directed towards the partial financing of the DB Schenker transaction. This transaction is expected to boost DSV’s market position and operational scale, making the financing move a critical step in its expansion strategy.

DSV secured DKK 21 billion in core commitments from key stakeholders provided strong support for the company’s capital increase.

If the acquisition of DB Schenker is completed, it would rank among the largest transactions in the logistics industry, further cementing DSV’s status as a global leader.