- Siemens’ industrial business profit for Q2 misses estimates, reporting EU2.51 billion, a 2.5% Y/Y fall, versus the estimated EU2.76 billion.
- Profit margin for industrial business is 14% versus the estimated 15.2%, a slight fall from 14.2% Y/Y.
- The net income reported is EU2.20 billion, with a decrease of 38% Y/Y.
- EPS before purchase price allocation is EU2.73 compared to the estimated EU2.25, a fall from EU4.57 Y/Y.
- Digital Industries reports a profit of EU741 million, a 41% Y/Y decrease, missing an estimation of EU841.2 million.
- The profit margin of Digital Industries however shows a rise of 16.5% versus the previous year’s 24.3%.
- Smart Infrastructure scores a profit of EU854 million, a rise of 9.6% Y/Y, better than the estimated EU833.9 million.
- Mobility profit is at EU237 million, missing the estimate by EU8m and dropping 4% Y/Y.
- The revenue for Q2 is static at 0%, missing the estimated growth of 2.06%.
- The industrial business revenue is EU17.91B, a 1.2% Y/Y fall, missing the estimated EU18.21 billion.
- Orders for Q2 are EU20.45 billion, a decrease of 13% Y/Y, falling short of the estimated EU21.07 billion.
- Free cash flow is reported at EU1.34 billion, marking a 43% Y/Y decline.
- Contrary to previous assumptions, customers’ destocking of Digital Industries is expected to continue well into the second half of the year.
- Digital Industries assumes that demand in its automation businesses will pick up in the second half of the fiscal year and expects large contract wins in its software business.
- Siemens is focusing its portfolio with the sale of Innomotics to KPS Capital Partners for €3.5 billion.
A look at Siemens Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Siemens AG, an engineering and manufacturing company, is positioned for a promising long-term outlook, fueled by strong momentum and growth potential. With a Momentum score of 5, Siemens is showing significant positive performance trends, indicating a robust market presence and investor interest. Additionally, the Growth score of 4 highlights the company’s potential for expansion and development in various sectors.
While Siemens has solid prospects in momentum and growth, its Value and Resilience scores are moderate at 2, suggesting room for improvement in terms of valuation and stability. However, the Dividend score of 3 underscores the company’s commitment to rewarding shareholders through consistent dividend payouts. As Siemens focuses on electrification, automation, and digitalization, along with engineering solutions across multiple industries, it stands poised for continued growth and innovation in the global market.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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