Siemens Healthineers AG (ETR:SHL) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Siemens Healthineers AG (ETR:SHL) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of €5.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.8% to hit €0.47 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Siemens Healthineers from 17 analysts is for revenues of €23.7b in 2025. If met, it would imply a satisfactory 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 11% to €2.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of €23.8b and earnings per share (EPS) of €2.12 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Siemens Healthineers

It might be a surprise to learn that the consensus price target was broadly unchanged at €60.49, 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 €67.00 and the most bearish at €52.50 per share. This is a very narrow spread of estimates, implying either that Siemens Healthineers is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. 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 5.0% growth on an annualised basis. This is compared to a historical growth rate of 9.5% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.8% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Siemens Healthineers. 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 €60.49, with the latest estimates not enough to have an impact on their price targets.

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 Healthineers 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 Healthineers 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.