Siemens Healthineers AG (ETR:SHL) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Investors in Siemens Healthineers AG (ETR:SHL) had a good week, as its shares rose 8.0% to close at €52.20 following the release of its full-year results. Revenues of €22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €1.73, missing estimates by 3.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Siemens Healthineers

Taking into account the latest results, the most recent consensus for Siemens Healthineers from 16 analysts is for revenues of €23.7b in 2025. If met, it would imply an okay 6.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 23% to €2.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of €23.8b and earnings per share (EPS) of €2.20 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €59.35, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Siemens Healthineers, with the most bullish analyst valuing it at €65.90 and the most bearish at €50.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Healthineers' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it looks like Siemens Healthineers 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 Healthineers. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Siemens Healthineers going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Siemens Healthineers that 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.