Siemens Aktiengesellschaft Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Last week saw the newest third-quarter earnings release from Siemens Aktiengesellschaft (ETR:SIE), an important milestone in the company's journey to build a stronger business. Revenues were €19b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €2.48 were also better than expected, beating analyst predictions by 10%. 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. 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

Taking into account the latest results, the most recent consensus for Siemens from 19 analysts is for revenues of €82.1b in 2025. If met, it would imply an okay 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 11% to €11.39. In the lead-up to this report, the analysts had been modelling revenues of €82.5b and earnings per share (EPS) of €11.56 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of €197, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Siemens, with the most bullish analyst valuing it at €230 and the most bearish at €125 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Siemens' revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2025 being well below the historical 7.9% p.a. growth over the last five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.3% per year. Factoring in the forecast slowdown in growth, it looks like Siemens is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €197, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Siemens. Long-term earnings power is much more important than next year's profits. We have forecasts for Siemens going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Siemens you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.