K+S-Aktie mit leichten Kursgewinnen (11,285 €) from

K+S share with slight price gains

Good prospects for the future

K+S AG (ETR: SDF) share price rose slightly on Tuesday and was trading at €11.285 following the release of the company’s first-quarter financial results on Monday. The company topped analysts’ estimates for earnings and revenue in the recent quarter.

Q1 financial results

K+S reported €1.05 billion of revenue in the first quarter that represents a 22% annualised growth. It beat the consensus estimate by more than 20%. The German chemical company attributed the higher revenue to higher KCL average prices.

K+S’s EBIT (earnings before interest and taxes) jumped 34% on a year over year basis to €255 million. It was a 12% beat on analysts’ forecast. The company reported €175 million of adjusted net income that translates to 60 cents per share. This was better than the estimate by about 10%.

The company said that its EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose by 32% to €356 million. Other notable figures in the quarterly report include a 16% increase in cost of goods sold and a 7% annualised growth in SG&A expenses.

Outlook

K+S raised its full-year guidance following the strong first-quarter performance. The company now expects its full-year EBIT to be between €1.05 billion and €1.2 billion. It previously forecast a range of €950 million to €1.1 billion.

In a note on Tuesday, analysts at Jefferies said:

“K+S delivered solid first-quarter figures and raised guidance. These results should be supportive of the share price.”

K+S share price technical analysis

Technically, the K+S share price is trading at €11.285, which is slightly above the important support level at €11.00. The stock is also approaching the key resistance level at €11.50. It has formed a double-top pattern, which is usually a bearish sign.

It is also trading along the 25-day and 50-day exponential moving averages. Therefore, there is a possibility that the stock will pull back in the near term. However, if it manages to break above the resistance level at €11.50, it could rally to the next resistance level at €12.00.