Siemens Shares Rise on Strong 4Q, Positive 2020 Guidance
November 07 2019 - 6:33AM
Dow Jones News
By Kim Richters
Shares in Siemens AG (SIE.XE) rose Thursday after the
engineering conglomerate reported strong results for its fourth
quarter and a guidance for its next fiscal year.
The German company beat analyst expectations for its fourth
quarter, with net profit of 1.32 billion euros ($1.46 billion),
revenue of EUR24.52 billion and orders of EUR24.71 billion all
higher than consensus forecasts.
Order intake in most divisions was higher than expected, except
in Siemens's mobility business, UBS said, adding that the segment
faced a tough last-year comparison basis.
Furthermore, Siemens issued a "solid" guidance for its 2020
fiscal year, UBS said, which includes a moderate decline in market
volume for its short-cycle businesses and moderate growth in
comparable revenue.
The company's forecasts for adjusted Ebita margins at its
digital industries and smart infrastructure divisions--17% to 18%
and 10% to 11% respectively--are ahead of expectations, analysts at
Citi said.
The guidance for digital industries is particularly positive and
"will be seen as a relief after recent market conjecture of a much
more challenging year for profits in 2020," they said.
At 1043 GMT, shares in Siemens traded 5.2% higher at
EUR114.02.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
November 07, 2019 06:18 ET (11:18 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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