Siemens Shares Rise on Strong Q4 Results

Siemens, the German conglomerate, experienced a surge in its stock price following the announcement of better-than-expected fourth-quarter results. The company's revenue for the quarter reached 21.39 billion euros ($23.20 billion), surpassing the consensus estimate of 20.99 billion euros. Similarly, orders stood at EUR21.80 billion, beating the estimated EUR20.08 billion mark. Comparatively, revenue and orders increased by 10% and 6% respectively year-on-year.

Additionally, Siemens reported a strong free cash flow of EUR4.6 billion in the quarter, exceeding expectations by 42%. This positive result led to a proposed dividend of EUR4.70 per share and the introduction of a EUR6 billion buyback program.

Analysts from Berenberg noted that the company's performance in the fourth quarter, including orders and profits, exceeded expectations. They also highlighted that Siemens' guidance for FY24 is slightly better than consensus estimates.

Siemens acknowledges that revenue growth may slow down in the next year due to a global demand slump for automation products. However, they anticipate a recovery in the second half of the year. The digital industries division's revenue is expected to grow by up to 3% or remain stagnant, particularly due to the slow recovery of automation businesses in China.

Citi analysts pointed out that while the DI margin guidance falls slightly below consensus estimates, the overall group earnings guidance is better than expected. They also highlighted positive factors such as improved order intake in the digital industries division during Q4 and the FY24 growth outlook of 0%-3%, which is more favorable than anticipated.

Overall, Siemens' strong Q4 results and positive outlook have contributed to a boost in investor confidence.