DSV Earnings: Muddling Through as Global Freight Volumes Continue to Drop

Despite DSV reporting a revenue decline of 40% year over year for the third quarter, relative to the global decline in freight volumes, we believe its performance was reasonable. The asset-light nature of the third-party logistics business also meant that narrow-moat DSV’s EBIT fell by one third, a number that is slightly more tolerable. One positive that investors should take from this update is that management tightened the full-year guidance range for EBIT by raising the lower end. We reiterate our DKK 1,120 fair value estimate and see the shares as fairly valued currently.