Maersk Earnings: Some Positive Signs As the Company Battles the Storm

Volumes retreated across the board for Maersk as the anticipated correction arrived in the first quarter. A decline in freight rates as global supply chain blockages are finally relieved, combined with a fall in volumes, driven by lower consumer demand and business spending, drove revenue down by more than a quarter year over year. Guidance for the full year is pointing to volume growth in the ocean business being flat at best, leading to EBITDA of $9.5 billion at the midpoint, roughly a quarter of what the company did last year. However, we see attractive upside to our DKK 20,000 fair value estimate from here.