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It's been a good week for Siemens Aktiengesellschaft (ETR:SIE) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.6% to €225. Siemens reported €18b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €4.66 beat expectations, being 5.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Siemens after the latest results.
Check out our latest analysis for Siemens
Following the latest results, Siemens' 20 analysts are now forecasting revenues of €79.5b in 2025. This would be a modest 3.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 29% to €12.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of €79.3b and earnings per share (EPS) of €12.24 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of €224, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Siemens at €285 per share, while the most bearish prices it at €140. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Siemens' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Siemens' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Siemens is also expected to grow slower than other industry participants.