Siemens Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The third-quarter results for Siemens Limited (NSE:SIEMENS) were released last week, making it a good time to revisit its performance. Results were mixed, with revenues of ₹43b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were ₹8.44 per share, -6.2% below whatthe analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Siemens

Taking into account the latest results, the current consensus from Siemens' nine analysts is for revenues of ₹192.7b in 2023, which would reflect a solid 20% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 38% to ₹47.27. Before this earnings report, the analysts had been forecasting revenues of ₹189.1b and earnings per share (EPS) of ₹46.74 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,666. 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, with the most bullish analyst valuing it at ₹3,097 and the most bearish at ₹1,609 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Siemens' growth to accelerate, with the forecast 16% annualised growth to the end of 2023 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Siemens to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₹2,666, 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 estimates - from multiple Siemens analysts - going out to 2024, and you can see them free on our platform here.

You can also see our analysis of Siemens' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.