Siemens Aktiengesellschaft Just Beat EPS By 5.7%: Here's What Analysts Think Will Happen Next

Investors in Siemens Aktiengesellschaft (ETR:SIE) had a good week, as its shares rose 6.7% to close at €225 following the release of its first-quarter results. The result was positive overall - although revenues of €18b were in line with what the analysts predicted, Siemens surprised by delivering a statutory profit of €4.66 per share, modestly greater than 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Siemens

Taking into account the latest results, the current consensus from Siemens' 20 analysts is for revenues of €79.6b in 2025. This would reflect a credible 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 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. 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.

The analysts reconfirmed their price target of €225, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 5.3% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while Siemens' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 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 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Siemens you should be aware of.

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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.