Siemens: shares rise as group boosts outlook

(CercleFinance.com) - As expected, Siemens reported stronger quarterly earnings on Wednesday and "significantly" raised its full-year guidance, helping ease investor concerns about the company's outlook.


The German engineering group now expects net profit of 5 to 5.5 billion euros for the current fiscal year, well above its previous expectation of "only moderate growth," from 4.2 billion euros in the previous fiscal year.

This morning Siemens - which has already pre-announced its first-quarter results - confirmed that net profit rose to 1.5 billion euros in the October-to-December quarter, up from 1.1 billion euros a year ago.

Its revenue rose to 14.1 billion euros, up 7% on a comparable basis, topping expectations as analysts were expecting sales of just 13.4 billion euros.

The Munich-based company said performance exceeded market expectations, despite macroeconomic conditions remaining difficult, due to the Covid-19 pandemic, and despite negative currency translation effects.

Analysts at RBC noted the outlook upgrade was bigger than expected.

"More importantly, we see a management team that is building a track record in terms of execution, which is key to the long-term equity story," Berenberg added.

Siemens shares were up 1.5% in morning trading.

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