Germany-based Siemens AG (DE:SIE) reported its Q3 FY24 results, with an industrial profit of €3.03 billion beating the company-complied average forecast of €2.84 billion. The company’s results were driven by higher demand for electricity infrastructure and industrial software. Further, Siemens confirmed its outlook for Fiscal 2024. Siemens shares gained 1.01% as of writing.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Siemens AG is a leading European engineering and manufacturing company with operations in sectors like energy, finance, healthcare, mobility, automation, and consumer products.
Insights from Siemens’s Q3 Results
In the third quarter, Siemens reported a revenue growth of 5% on a comparable basis and 4% on an actual basis, reaching €18.9 billion. This growth was mainly driven by a double-digit increase in Smart Infrastructure, along with contributions from Siemens Healthineers and Mobility businesses. However, the company mentioned that its Industrial Automation business remains challenging.
Speaking of order volume, the company reported a 15% decline on a comparable basis to €19.8 billion in Q3. Even though Siemens witnessed strong order growth in Digital Industries and Smart Infrastructure with new contracts, the overall volume declined due to lower orders in Mobility.
Net income for the period reached €2.13 billion, marking a year-over-year growth of 48% on an actual basis.
In terms of outlook, Siemens stated that the expected revenue growth at the group level will be towards the lower side of the forecasted range of 4% to 8%. Additionally, it noted that profit margins for its Digital Industries unit would be at the lower end of its target range of 18% to 21%, while margins for its Smart Infrastructure unit would be at the upper end of 16% to 17%.
Is Siemens Stock a Good Buy?
On TipRanks, SIE stock has received a Moderate Buy rating from analysts based on nine Buys, one Hold, and one Sell recommendation. The Siemens share price prediction for 12 months is €201, which is 28.7% above the current trading levels.
