Siemens' Priority Lies with Results, Not Just Numbers
Siemens, the German industrial conglomerate, is set to release its Q3 2021 earnings tomorrow, joining the ongoing earnings season. The company's stock remains an attractive investment for long-term oriented investors on the German exchange.
In recent quarters, Siemens has shown promising results. For instance, in Q3 2025, Siemens Energy posted strong numbers, beating EPS estimates significantly and revenue expectations, reflecting robust operational performance and profitability improvements. Siemens as a whole reported a 2.5% year-over-year revenue increase, with quarterly revenue of €19.38 billion. Siemens Healthineers, another key subsidiary, showed 7.6% year-over-year revenue growth, driven by strong performance in key segments.
However, the trends indicate that analysts typically expected Siemens to demonstrate growth in orders and revenue with stable or improving profit margins, except for some segment-level risks. Unfortunately, specific analyst expectations or consensus estimates for Siemens' Q3 2021 earnings, orders, or margins are not found in the provided results.
The focus for investors might shift from Siemens Energy's performance to Siemens' guidance and results in the Digital Industries segment, as issues in this segment are expected to decrease the bottom line. The result per share before certain purchase price effects is expected to be 10.40 to 11.00 euros, excluding the gain from the sale of the Innomotics drive business.
New business is expected to increase by around 10.5% to 21.5 billion euros, primarily driven by increased order intakes in the rail segment. After-tax profits are expected to remain at 1.97 billion euros, compared to 2.1 billion euros in the previous year.
Analysts anticipate further growth in orders and revenue for Siemens. Without the US acquisition, analysts predict a comparable revenue growth of 4% to approximately 19.2 billion euros. However, the strong numbers from Siemens Energy might not be enough to fully compensate for potential issues in the Digital Industries segment.
Investors should focus on Siemens' guidance, as Altair is not yet included in the guidance for the current fiscal year. The earnings release for Siemens is scheduled for tomorrow (Thursday). Siemens is expected to present a solid set of numbers for the past quarter.
Sources: 1. DER AKTIONÄR 2. dpa-AFX
In light of the upcoming earnings release, investors may scrutinize Siemens' guidance, particularly for the Digital Industries segment, as potential issues could impact the overall profitability. Furthermore, the expectation exists for Siemens to deliver solid financial performance, with a focus on revenue growth and stable profit margins, which aligns with the anticipated growth in orders.
