Siemens Healthineers Shares Gain on Better-Than-Expected 1Q Margins, Confirmed Guidance

By Cecilia Butini

Shares in German medical-equipment maker Siemens Healthineers AG rose Thursday despite lower first-quarter earnings, as margins came in ahead of expectations and the company backed its guidance for the year.

At 0918 GMT, shares traded up 6.5% at EUR52.38.

Siemens Healthineers said its first-quarter earnings--which runs from October to December--were hit by a lower contribution from Covid-19 antigen tests, restructuring costs and other cost increases.

The company posted net profit of 426 million euros ($468.2 million), 10% lower than the previous year, and revenue of EUR5.08 billion, down 4.5% on a comparable basis. Adjusted earnings before interest and taxes declined 28% to EUR647 million, while the EBIT margin narrowed to 12.7% from 17.6%, the company said.

The results should alleviate some investor concerns despite the disappointment at first glance, analysts at Citi said. The company shows robust hospital capital expenditure and margins that are trending ahead of expectations, and that should help margin improvement in the second half of the fiscal year, they said.

Results were below consensus but guidance for the year was fully reiterated and, most significantly, the equipment order book was up double digits across all divisions, analysts at UBS said.

Siemens Healthineers backed its outlook for comparable revenue growth of between minus 1% and plus 1%, or 6% to 8% excluding revenue from rapid Covid-19 antigen tests. It expects adjusted basic earnings per share of EUR2.00 to EUR2.20.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

February 02, 2023 04:57 ET (09:57 GMT)

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