By Pierre Bertrand
Siemens is scheduled to report its fiscal third-quarter results on Thursday. Here is what you need to know:
ORDERS: The German industrial company is forecast to report 22.19 billion euros ($24.43 billion) worth of orders for the quarter, roughly flat compared with the EUR22.01 billion it achieved in the same period a year prior, according to a company provided consensus of analysts’ expectations.
REVENUE: Analysts see the company making EUR19.27 billion in revenue in the quarter, according to the provided consensus. Siemens reported EUR17.87 billion in revenue in the April to June period of last year.
NET INCOME: Siemens is expected to swing to a profit of EUR1.41 billion in the quarter, according to the consensus. The result would compare with the EUR1.66 billion net loss it reported in the prior year after booking Russia-related charges and an impairment on its investment in Siemens Energy.
WHAT TO WATCH:
–PROFITABILITY: Analysts see the company’s profit margin for industrial businesses in the period falling to 15.8% from 17% previously, even if the company’s core businesses are expected to report a combined EUR2.90 billion in profit, a slight increase compared with EUR2.88 billion a year prior.
–DIGITAL INDUSTRIES: Siemens’s digital-industries business is forecast by Morgan Stanley analyst Ben Uglow to report a decline in orders driven by softness in China. Morgan Stanley added that it also sees the unit posting quarterly sales growth below its fiscal-year guidance range of 17% to 20%. The U.S. bank estimates the unit will report a 25% to 30% decline in quarterly orders. According to the company-provided consensus, the business is estimated to report a 29% on-year decline in comparable orders.
–GUIDANCE: Siemens is expected to reiterate its fiscal 2023 growth and earnings-per-share guidance, Deutsche Bank analyst Gael de-Bray said in a research note. By division, smart infrastructure should see its margin outlook raised while remaining unchanged at its digital-industries and mobility businesses, the analyst said.
Write to Pierre Bertrand at [email protected]
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