Siemens Healthineers Shares Gain on Better-Than-Expected 1Q Margins, Confirmed Guidance
02 Februar 2023 - 11:12AM
Dow Jones News
By Cecilia Butini
Shares in German medical-equipment maker Siemens Healthineers AG
rose Thursday despite lower first-quarter earnings, as margins came
in ahead of expectations and the company backed its guidance for
the year.
At 0918 GMT, shares traded up 6.5% at EUR52.38.
Siemens Healthineers said its first-quarter earnings--which runs
from October to December--were hit by a lower contribution from
Covid-19 antigen tests, restructuring costs and other cost
increases.
The company posted net profit of 426 million euros ($468.2
million), 10% lower than the previous year, and revenue of EUR5.08
billion, down 4.5% on a comparable basis. Adjusted earnings before
interest and taxes declined 28% to EUR647 million, while the EBIT
margin narrowed to 12.7% from 17.6%, the company said.
The results should alleviate some investor concerns despite the
disappointment at first glance, analysts at Citi said. The company
shows robust hospital capital expenditure and margins that are
trending ahead of expectations, and that should help margin
improvement in the second half of the fiscal year, they said.
Results were below consensus but guidance for the year was fully
reiterated and, most significantly, the equipment order book was up
double digits across all divisions, analysts at UBS said.
Siemens Healthineers backed its outlook for comparable revenue
growth of between minus 1% and plus 1%, or 6% to 8% excluding
revenue from rapid Covid-19 antigen tests. It expects adjusted
basic earnings per share of EUR2.00 to EUR2.20.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
February 02, 2023 04:57 ET (09:57 GMT)
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