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Siemens Healthineers AG (ETR:SHL) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.1% to hit €5.5b. Statutory earnings per share (EPS) came in at €0.42, some 4.3% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Siemens Healthineers
Taking into account the latest results, the consensus forecast from Siemens Healthineers' 17 analysts is for revenues of €23.8b in 2025. This reflects a modest 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 20% to €2.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of €23.7b and earnings per share (EPS) of €2.12 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €61.60. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Siemens Healthineers analyst has a price target of €69.10 per share, while the most pessimistic values it at €49.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Siemens Healthineers' revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2025 being well below the historical 10.0% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% annually. So it's pretty clear that, while Siemens Healthineers' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.