- Wednesday, October 16, 2024
Siemens, the German industrial conglomerate, is set to announce its financial results for the first quarter of fiscal 2024 on Thursday. Here are the key details you need to know:
Revenue Forecast
According to consensus estimates provided by the company, Siemens is expected to report revenue of €18.58 billion ($19.96 billion) for the quarter ending in December. This would be an increase from €18.07 billion in the same period last year.
Orders Forecast
Analysts predict a decline in orders compared to the previous year. Siemens is forecasted to report €20.50 billion in new orders, down from €22.62 billion in the same quarter of the previous year.
Net Profit Forecast
Analysts expect Siemens to achieve a net profit of €1.85 billion for the quarter, an increase from €1.48 billion in the previous year.
Siemens shares have seen significant growth over the past three months, rising almost 29%. In comparison, the Stoxx Europe 600 Industrial Goods & Services index has risen by 19%.
What to Watch
In a research note, Jefferies analysts highlighted that Siemens might take a more aggressive approach to mergers and acquisitions in fiscal 2024, following its commitment to divest its stake in Siemens Energy. They suggested that potential areas of focus could be digitalization, data centers, or energy management. Jefferies also noted that portfolio changes could help boost Siemens's valuation closer to that of key European peers like ABB and Schneider Electric.
JPMorgan analysts expect Siemens to repeat its comments from the previous quarter regarding divisional trends. They anticipate that digital industries will stabilize, smart infrastructure will continue to perform well, and mobility will deliver on a significant order backlog. However, there has been concern about order patterns in the digital-industries division, especially after reports from peers like ABB and Rockwell Automation showed continued declines. Analysts at Citi, on the other hand, believe that customers' destocking is expected to end this quarter, with orders reaching an inflection point in the second half.
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