Siemens concludes its fiscal year on a high note, surpassing expectations with a robust performance in the fourth quarter. The company reports a notable revenue of EUR21.39 billion and orders totaling EUR21.80 billion, both exceeding consensus estimates and reflecting a strong demand for its products and services.
Investor confidence soars as Siemens shares experience a remarkable 5.5% surge in response to the stellar Q4 results. The stock is currently trading at EUR146.48, demonstrating a positive market sentiment driven by the company’s impressive financial performance.
Impressive Free Cash Flow:
Siemens demonstrates financial prowess by reporting an impressive free cash flow of EUR4.6 billion in the fourth quarter. This figure surpasses expectations by a substantial 42%, showcasing the company’s operational efficiency and strong financial position.
Industry analysts weigh in on Siemens’ performance, highlighting that the underlying business has outperformed expectations in Q4. Analysts express positivity regarding the positive results in the fourth quarter and note a slight improvement in Siemens’ fiscal year 2024 guidance, indicating a favorable outlook.
Anticipated Revenue Slowdown:
While Siemens celebrates its Q4 success, the company anticipates a slowdown in revenue growth for the upcoming year. This projection is particularly notable in the digital industries division, with Siemens expecting a recovery to commence in the second half of the fiscal year.
Mixed Margin Guidance:
Siemens provides guidance on profit margins, indicating a slightly softer outlook for the digital industries division compared to consensus estimates. However, the overall group earnings guidance surpasses expectations, presenting a balanced perspective on Siemens’ financial outlook, with positive signals for future growth and sustainability.