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Maersk Stock Down Nearly 1% Today Despite Reporting Strong Q2 2021 Earnings Results

UTC by Steve Muchoki · 3 min read
Maersk Stock Down Nearly 1% Today Despite Reporting Strong Q2 2021 Earnings Results
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Maersk recorded earnings before interest, tax, depreciation, and amortization (EBITDA) of $5.1 billion during the second quarter.

A.P. Moeller-Maersk (OMX: MAERSK.B) stock traded 0.72% down around Kr 17,190 as of August 6, 2021, 12:52 p.m. CEDT. However, that should not dilute the fact Maersk stock has added approximately 96.46%, and 26.44% in the past year and seven months respectively through Thursday according to MarketWatch.

The Danish integrated shipping company reported its second-quarter 2021 earnings results on Friday. According to the report, Maersk recorded earnings before interest, tax, depreciation, and amortization (EBITDA) of $5.1 billion during the second quarter. This represented a 200% rise from $1.7 billion reported during the same time last year.

Further, the shipping giant recorded a 60% spike in revenue to $14.2 billion during the second quarter.

The company attributed the notable spike in revenue to huge demand in the global shipping industry. Right now in container shipping, we have effectively unmet demand. The global capacity is not able to lift all of the demand and that is what is driving up freight rates,” Skou told CNBC’s “Squawk Box Europe” on Friday.

“At the same time, of course, we have had congestion in Los Angeles, we have had the Suez Canal closed for a week, we have one of the largest ports in China closed for more than a week in the last quarter, and that takes our capacity from the market, which adds to the problem, so to speak.”

Maersk Stock and the Market Outlook

Almost 1 in every 5 containers in the global shipment is facilitated by Maersk. This shows the magnitude of global penetration both in the inland and sea shipping industry. However, the company remains focused to further acquire more related companies to expand its global reach.

During the past year, the company has experienced notable supply chain disruptions. Among the disruptions include the Covid pandemic, Suez Canal closure, port congestion among others. However, the company has seen a big comeback in the past few months.

Consequently, the company expects its third-quarter earnings to come stronger as the global economy rebounds from the ongoing coronavirus pandemic. “The outlook for the third quarter is strong and we expect that the current momentum in Ocean will continue into the fourth quarter, also benefiting our Terminals business,” Skou said in the statement.

Worth noting, Maersk has continued on its acquisition spree and plans to continue with it in the coming quarters. Notably, the company announced that it acquired Visible Supply Chain Management and B2C Europe during the past quarter.

Analysts remain positive about the future growth prospects of the shipping giant. According to a survey conducted by MarketWatch, Maersk stock received an average rating of Over from 26 ratings.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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