Earnings Beat: Siemens Energy AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The investors in Siemens Energy AG's (ETR:ENR) will be rubbing their hands together with glee today, after the share price leapt 23% to €24.28 in the week following its half-year results. Although revenues of €16b were in line with analyst expectations, Siemens Energy surprised on the earnings front, with an unexpected (statutory) profit of €0.08 per share a nice improvement on the losses that the analystsforecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Siemens Energy

Taking into account the latest results, the consensus forecast from Siemens Energy's 17 analysts is for revenues of €34.1b in 2024. This reflects a modest 6.7% improvement in revenue compared to the last 12 months. Siemens Energy is also expected to turn profitable, with statutory earnings of €1.34 per share. In the lead-up to this report, the analysts had been modelling revenues of €32.9b and earnings per share (EPS) of €1.26 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for Siemens Energy 19% to €21.30on the back of these upgrades. 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 Energy, with the most bullish analyst valuing it at €32.70 and the most bearish at €11.40 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Siemens Energy's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.8% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Siemens Energy to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Siemens Energy's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Siemens Energy going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Siemens Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.