Q3 beat, possible Trump win in US elections fuel Ahold Delhaize shares
Recasts with focus on operating income, adds comments on US elections
** Shares in Ahold Delhaize AD.AS rise 7% after the supermarket group reported higher-than-expected revenue and underlying operating income inthe third quarter, helped bya faster recovery in Europe
** The Dutch company reported Q3 underlying earnings before interest and taxes of 855 million euros, while analysts were expecting 837 million eurosaverage in a company-compiled consensus
** Bryan Garnier analyst Clément Genelot told Reuters the strong share price reactionreflects not only the earningsbeat but alsothe likely electionof Trump asa US president
** There is expectation that Trump wouldleave corporate tax unchanged compared to a proposed 7% increase announced by his rival Kamala Harris, Genelot said
** ABN Amro analyst Robert Jan Vos notes the share price is supported by a strong US dollar on the back of US elections, which is positive for Ahold Delhaize as it generates more than 60% of cash flows in US
** The group confirmed its 2024 outlook and a 1 billion euro share buyback for 2025
** The stock, on track for its best day since Feb. 15 2023, if gains hold, reaches its highest price ever
Reporting by Alban Kacher
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