Siemens Shares Rise After 1Q Beat Views, Fiscal Year 2023 Guidance Upgraded
February 09 2023 - 4:45AM
Dow Jones News
By Pierre Bertrand
Siemens AG shares rose Thursday after the German industrial
company exceeded expectations for its first quarter and increased
its guidance for fiscal 2023.
At 0914 GMT shares traded 7.0% higher at EUR149.94.
Siemens reported 1.48 billion euros ($1.59 billion) in net
profit for the quarter ended in December compared with EUR1.64
billion in the previous year, on revenue that grew 10% to EUR18.07
billion.
It posted EUR22.62 billion in first-quarter orders, a decline of
7% from the same period of fiscal 2022.
The result exceeded analysts' expectations of EUR1.45 billion in
net profit and EUR20.84 billion in orders, but fell short of
expectations of the EUR18.13 billion analysts had expected in
revenue, according to a company-provided consensus.
On the back of the strength of its order backlog, Siemens
upgraded its outlook for fiscal 2023--saying it now expects
comparable revenue growth, net of currency translation and
portfolio effects, between 7% and 10%. It had previously guided for
the metric to be in the range of 6% to 9%.
It also increased its guidance for its digital industries and
smart infrastructure businesses.
Siemens expects its digital industries business to achieve
fiscal 2023 comparable revenue growth of 12% to 15%, up from 10% to
13% previously, with a 20% to 22% profit margin, up from 19% to 22%
previously.
Smart infrastructure is expected to report comparable revenue
growth of 9% to 12%, compared with 8% to 11% previously, with a
profit margin between 13.5% to 14.5%, compared with 13% to 14%
previously.
Siemens increased its basic earnings per share expectations from
net income before purchase price allocation accounting to a range
of EUR8.90 to EUR9.40. It had previously expected EUR8.70 to
EUR9.20.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
February 09, 2023 04:30 ET (09:30 GMT)
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