Siemens Reports Strong Earnings Growth, Positive Outlook for 2025

Siemens has reported a notable increase in net income and earnings per share for fiscal 2024. The company anticipates further revenue growth and stable earnings for fiscal 2025, signaling a robust position despite a slight decline in orders.

Date: 14-11-2024

AI Rating: 7

According to the report, Siemens demonstrated strong performance in fiscal 2024 with net income rising to 9.0 billion euros, an increase from 8.5 billion euros in the previous year. This reflects a solid growth trajectory which can have a positive impact on the company's stock price.

The Basic Earnings Per Share (EPS) for Siemens also showed improvement, increasing to 10.53 euros compared to 10.04 euros a year ago. Furthermore, basic EPS before purchase price allocation (EPS pre PPA) rose to 11.15 euros, up from 10.77 euros. This improvement in earnings metrics could enhance investor confidence and could contribute positively to stock valuation.

The report indicates that the Net Income for the fourth quarter increased to 2.1 billion euros, up from 1.9 billion euros year over year, which reaffirms the company’s improving profitability. Additionally, revenue saw a rise of 2 percent on a comparable basis to 20.8 billion euros. This growth in revenue suggests a healthy operational performance that can attract potential investors.

While the company experienced a 4 percent decline in comparable orders to 84.1 billion euros, the forecast for fiscal 2025 anticipates comparable revenue growth in the range of 3 percent to 7 percent. Siemens also projects basic EPS before PPA to be in the range of 10.40 euros to 11.00 euros for fiscal 2025. The company’s stable outlook despite the decline in orders indicates resilience and capability to manage market fluctuations.

In summary, the overall performance indicators such as net income, EPS growth, and revenue increase position Siemens positively for future performance, even with the observed decline in orders.

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