Siemens Limited Just Beat EPS By 7.1%: Here's What Analysts Think Will Happen Next

It's been a good week for Siemens Limited (NSE:SIEMENS) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.8% to ₹4,347. The result was positive overall - although revenues of ₹48b were in line with what the analysts predicted, Siemens surprised by delivering a statutory profit of ₹14.21 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Siemens after the latest results.

Check out our latest analysis for Siemens

Following the latest results, Siemens' eight analysts are now forecasting revenues of ₹219.7b in 2024. This would be a modest 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 14% to ₹64.23. In the lead-up to this report, the analysts had been modelling revenues of ₹222.8b and earnings per share (EPS) of ₹61.86 in 2024. So the consensus seems to have become somewhat more optimistic on Siemens' earnings potential following these results.

There's been no major changes to the consensus price target of ₹4,400, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Siemens at ₹5,656 per share, while the most bearish prices it at ₹3,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. We would highlight that Siemens' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. So it's pretty clear that, while Siemens' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Siemens following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Siemens going out to 2026, 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.