Results: Siemens Energy AG Delivered A Surprise Loss And Now Analysts Have New Forecasts

Shareholders might have noticed that Siemens Energy AG (ETR:ENR) filed its quarterly result this time last week. The early response was not positive, with shares down 2.4% to €18.83 in the past week. Revenues came in at €6.0b, in line with estimates, while Siemens Energy reported a statutory loss of €0.18 per share, well short of prior analyst forecasts for a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Siemens Energy after the latest results.

View our latest analysis for Siemens Energy

After the latest results, the 15 analysts covering Siemens Energy are now predicting revenues of €28.5b in 2022. If met, this would reflect a satisfactory 2.1% improvement in sales compared to the last 12 months. Siemens Energy is also expected to turn profitable, with statutory earnings of €0.15 per share. Before this earnings report, the analysts had been forecasting revenues of €28.6b and earnings per share (EPS) of €0.18 in 2022. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at €27.59, 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 Energy, with the most bullish analyst valuing it at €37.00 and the most bearish at €17.00 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Siemens Energy's growth to accelerate, with the forecast 2.9% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.0% per annum over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. So it's clear that despite the acceleration in growth, Siemens Energy is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Siemens Energy's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Siemens Energy going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Siemens Energy that we have uncovered.

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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.