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It's been a good week for Siemens Healthineers AG (ETR:SHL) shareholders, because the company has just released its latest annual results, and the shares gained 3.7% to €50.96. It looks like the results were a bit of a negative overall. While revenues of €22b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.2% to hit €1.73 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Siemens Healthineers
Taking into account the latest results, the most recent consensus for Siemens Healthineers from 17 analysts is for revenues of €23.6b in 2025. If met, it would imply an okay 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 22% to €2.12. Before this earnings report, the analysts had been forecasting revenues of €23.6b and earnings per share (EPS) of €2.17 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at €59.62, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Siemens Healthineers, with the most bullish analyst valuing it at €65.90 and the most bearish at €50.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Siemens Healthineers' past performance and to peers in the same industry. We would highlight that Siemens Healthineers' revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% annually. Factoring in the forecast slowdown in growth, it looks like Siemens Healthineers is forecast to grow at about the same rate as the wider industry.