Mercedes-Benz's second-quarter results surpassed expectations, with guidance largely maintained. Jefferies analyst Philippe Houchois noted that free cash flow was boosted by the sale of Daimler Truck shares, contributing 1.1 billion euros. The company's car margin was 4%, within the full-year range, and the vans margin of 10.2% exceeded guidance. Despite a net negative contribution of 560 million euros from China joint ventures, the sale of Daimler Truck shares provided a 417 million-euro boost to industrial free cash flow, leading to a 5% share price increase.

Bernstein analysts echoed these sentiments, stating Mercedes-Benz's 4% cars adjusted margin beat consensus. An impairment in Chinese joint ventures reduced reported cars unit EBIT, but the free cash flow boost from the Daimler Truck stake sale was significant. Meanwhile, Michelin's first-half results offered few surprises and may not be enough to further lift its shares, despite outperforming peers year-to-date. The French tire maker beat first-half adjusted earnings expectations narrowly and reiterated its forecast for earnings growth this year. Bernstein analysts believe Michelin's full-year guidance is conservative and beatable, but an upgrade cycle might be delayed. Michelin shares are up 23% year-to-date.