Siemens: consensus exceeded, optimistic forecasts

( – Siemens announced on Thursday that it had ended its 2021/2022 financial year in style, thanks to “remarkable” fourth quarter performances which enabled it to post a “record” profit for the financial year.

The German industrial conglomerate saw its turnover increase by 12% on a like-for-like basis over one year during the period from June to September, to 20.6 billion euros.

Its new orders jumped to 21.8 billion euros, against 19.1 billion a year earlier.

In both cases, these amounts are well above consensus expectations.

Over the entire financial year ended at the end of September, the group said it had generated a record industrial profit of 10.3 billion euros, against 8.8 billion at the end of the previous financial year.

Following these performances, Siemens plans to offer its shareholders the payment of an annual dividend of 4.25 dollars per share, up from the four euros which had been paid for the 2020/2021 financial year.

For its new 2022/2023 financial year, the German industrial giant says it anticipates revenue growth of 6% to 9% on a comparable basis, for earnings per share of between 8.70 and 9.20 euros, where the consensus so far was 8.72 euros.

This optimistic outlook was obviously welcomed by analysts this morning.

“These forecasts point to an upward revision to consensus estimates,” RBC said in a reaction note.

The Canadian broker points out that the Siemens title is currently trading on a 2023 PER of 15x, i.e. a discount of 10% to 15% compared to the rest of the European industrial sector.

In the wake of this higher-than-expected publication, Siemens shares rose 8% on Thursday morning, marking the largest increase in a DAX index on the Frankfurt Stock Exchange, which rose 0.6% at the same time.

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