Shares of German luxury carmaker, Mercedes-Benz (OTC:MBGAF) are up nearly 3% on Friday after the company reported their industrial business’ preliminary free cash flow results for 2023 of 11.3 billion euros ($12.28 billion).
Results surpassed consensus estimates of 9.9 billion euros by 14% and marked a substantial 21% increase compared to the previous year's figures in 2022. Mercedes-Benz is scheduled to unveil its complete earnings report on February 22, with other results anticipated to align more closely with market expectations.
The company attributed their outperformance to improved working capital and enhanced cash conversion.
“Whilst the pre-release presents a positive picture of 4Q23 cash generation, we think investors will remain focused on the FY24 guidance,” wrote analysts in a note.
Mercedes-Benz has not shared details about the other aspects of its full-year guidance. These details are expected to be revealed when the company publishes its 4Q23 and FY23 earnings.
Following German market rules, companies are required to make an ad-hoc announcement if they learn of results that significantly differ from the guidance and market expectations, usually exceeding a threshold of about +10%.
Analysts expect the German automaker to report 2023 EPS of 13.07 euro, slightly ahead of consensus.