- Siemens Healthineers has updated its forecast for the fiscal year (FY) adjusted Earnings Per Share (EPS), now estimating it between €2.30 and €2.45. Previously, the forecast was between €2.20 and €2.50.
- The company projects comparable sales growth of 5.5% to 6%, an increase from the previous 5% to 6% forecast. The market estimate was 5.74%.
- Third-quarter revenue reached €5.66 billion, depicting a 4.4% year-over-year (y/y) increase, matching market estimates.
- Imaging sales were €3.24 billion, showing an 8.8% y/y increase, beating the €3.13 billion estimate.
- Advanced Therapies sales came in at €484 million, a slight increase of 0.8% y/y, but below the €504.2 million estimate.
- Diagnostics experienced a decline in sales to €1.06 billion, down 4.3% y/y, and missed the €1.11 billion estimate.
- Overall comparable sales increased by 7.6%, exceeding the market estimate of 5.82%.
- The EPS for the third quarter was €0.49, an increase from €0.42 y/y, exceeding the estimated €0.45.
- Adjusted earnings before interest and taxes (Ebit) reached €953 million, an increase of 16% y/y, surpassing the €890 million estimate.
- Imaging’s adjusted Ebit was €680 million, up 14% y/y, above the €634.5 million estimation.
- Diagnostics’ adjusted Ebit was €97 million, marking an 18% y/y growth, outperforming the €84.4 million estimation.
- Advanced Therapies’ adjusted Ebit dropped 23% y/y to €51 million, not meeting the €71 million estimate.
- The adjusted Ebit margin improved to 16.8%, compared to 15.2% y/y, exceeding the 15.7% estimate.
- Adjusted EPS for the quarter was €0.64, up from €0.52 y/y, beating the forecast of €0.53.
- Free cash flow significantly increased to €844 million, a 55% y/y rise.
- Varian’s sales totaled €978 million, marking a 5.5% increase y/y, slightly under the €992.9 million estimate.
- Varian’s adjusted Ebit was €184 million, increasing 19% y/y, outperforming the estimate of €166.8 million.
- Geopolitical developments, particularly trade tariff agreements, have led Siemens Healthineers to refine the ranges for their fiscal year 2025 revenue growth and adjusted EPS outlook, raising the midpoints due to stellar performance so far.
Siemens Healthineers on Smartkarma
Analysts on Smartkarma, including Baptista Research, have been closely covering Siemens Healthineers. Baptista Research recently published a bullish report titled “Siemens Healthineers: Can Photon Counting CT Spark the Next Imaging Revolution?” The report highlighted the company’s second-quarter fiscal 2025 performance, noting a robust nearly 7% revenue growth which surpassed full-year guidance. The report emphasized favorable growth trajectories for Siemens Healthineers, despite facing certain market headwinds. Margin improvements were also mentioned in the report, contributing to an increase in adjusted EPS.
A look at Siemens Healthineers Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Siemens Healthineers, a medical technology company, has been assessed using Smartkarma Smart Scores. With strong ratings in Growth, Resilience, and Momentum, the outlook for the company’s long-term performance looks promising. The company’s focus on innovation and expansion in the healthcare sector bodes well for its future development. Siemens Healthineers’ commitment to providing cutting-edge medical imaging, diagnostics, and digital solutions positions it favorably in the market.
Although Value and Dividend scores are average, the robust performance in Growth, Resilience, and Momentum underscore Siemens Healthineers’ potential for sustained success. As it continues to enhance its offerings and expand its global footprint, investors may find Siemens Healthineers an attractive long-term investment opportunity in the medical technology sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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