By Cecilia Butini

 

Shares of Siemens Healthineers dropped in early trading on Wednesday after the company posted disappointing results in its Varian radiation oncology business, according to analysts.

At 0937 GMT, shares traded 7% lower at EUR48.63.

The German health-care company reported higher net profit in its fiscal third quarter, mainly thanks to lower taxes and higher revenue. Growth in the imaging and advanced-therapies segments was broadly offset by a drop in diagnostics sales due to weaker demand for Covid-19 antigen tests, the company said.

Although revenue growth was in line with consensus and Citi estimates, adjusted earnings before interest and taxes came in below consensus, analysts at the bank say in a note, pointing out that the miss was driven exclusively by Varian, which is hit by temporary logistics issues.

The miss at Varian is likely to renew the debate on the margin progression within the business, according to Citi analysts.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

August 02, 2023 06:08 ET (10:08 GMT)

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