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Siemens Healthineers AG (ETR:SHL) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of €5.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.47, missing estimates by 4.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 17 analysts covering Siemens Healthineers are now predicting revenues of €23.7b in 2025. If met, this would reflect a modest 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to €2.07. Before this earnings report, the analysts had been forecasting revenues of €23.8b and earnings per share (EPS) of €2.12 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for Siemens Healthineers
It might be a surprise to learn that the consensus price target was broadly unchanged at €60.49, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Siemens Healthineers at €67.00 per share, while the most bearish prices it at €52.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Siemens Healthineers' revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 9.5% 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) 5.8% 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.