Industrial giant Siemens Aktiengesellschaft (OTC: SIEGY, XETRA: SIE.DE) reported robust fiscal 2023 fourth-quarter earnings and revenues. However, the company issued a slightly weaker fiscal 2024 revenue growth outlook, citing sluggishness in its industrial automation segment. The stock of Siemens ended Thursday’s trading session at $79.72, up $4.57, or 6.08%, from its prior close.
Muenchen, Germany-based Siemens reported fourth-quarter revenues of €21.4 billion ($23.20 billion), up 4% from €20.57 billion in the comparable quarter of fiscal 2022.
For the latest quarter, the engineering behemoth posted a net income of €1.90 billion, or €2.14 per share, compared with a net income of €2.91 billion, or €3.36 per share, in the year-ago quarter.
Commenting on the quarterly results, Siemens President and CEO, Roland Busch, stated “Fiscal 2023 was a year of multiple records: In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high.”
Segment wise:
- Digital Industries revenues grew by 5% y-o-y to $5.97 billion.
- Smart Infrastructure revenues were $5.53 billion, up 7% from last year.
- Mobility revenues rose by 7% y-o-y to $2.88 billion.
- Siemens Healthineers revenues remained almost flat at $6.06 billion.
Notably, industrial profit surged 7% y-o-y to €3.40 billion in 4Q 2023 and surpassed Siemen’s guidance of €3.34 billion. For fiscal 2023, the company posted a record free cash flow of €10 billion.
Looking ahead, Siemens expects revenue growth in the range of 4% to 8% in Fiscal 2024, a downward revision from the 11% growth reported for fiscal 2023. The slightly weak guidance was based on the sluggishness anticipated in its industrial automation segment.
In its earnings report, Siemens stated that it anticipates comparable revenue growth for Digital Industries in FY24 to range between 0% and 3%. This projection stems from the expectation that a resurgence in worldwide demand for automation businesses, particularly in China, will occur in the latter half of the fiscal year following customer destocking. The company also contemplates increasing the annual dividend to €4.70 per share from €4.25 per share.
The robust quarterly earnings, coupled with a slightly weaker FY24 revenue outlook, are expected to keep the stock of Siemens range-bound in the near term.
The historical price chart indicates that the stock of Siemens is rising after testing the support at $77. The next resistance is anticipated to be only near $85. Additionally, the stock is trading above its 50-day moving average, while the stochastic indicator is in the bullish zone. Therefore, we anticipate Siemens to remain in an uptrend in the near term.
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