Nov. 10 (Bloomberg) -- German stocks advanced, paced by E.ON AG and HVB Group after both companies reported earnings that exceeded analysts' estimates.

E.ON climbed 1.7 percent to 76.24 euros. The world's largest publicly traded utility reported third-quarter net income of 3.37 billion euros ($3.97 billion). That's higher than the median estimate of 3.29 billion euros in a survey of analysts. The company reiterated that full-year earnings will rise significantly. E.ON said bigger acquisitions are possible.

HVB advanced 59 cents, or 2.4 percent, to 24.75 euros. The German bank being acquired by UniCredito Italiano SpA said profit climbed to 324 million euros in the third quarter, boosted by an increase in trading revenue and lower provisions for risky loans. That beat the 281 million-euro median estimate of 10 analysts surveyed by Bloomberg.

Deutsche Lufthansa AG (LHA GY), Europe's second-largest airline, fell 40 cents, or 3.4 percent, to 11.35 euros. Third- quarter profit before interest, taxes and one-time items was unchanged at 218 million euros, missing the 292-million euros median estimate of six analysts. The shares were cut to ``neutral'' from ``outperform'' at WestLB Equity Markets.

Hannover Re (HNR1 GY) dropped 1.92 euros, or 6.3 percent, to 28.57. The world's fourth-largest reinsurer reduced its profit forecast for 2005 for a second time after its quarterly loss widened because of claims from Hurricanes Katrina and Rita.

This is cache, read story here