Analysts see Siemens shares growing by one-fifth after strong all-round Q3 performance

Siemens shares remained under pressure on Wednesday, extending losses to a second straight session, after the technology company reported strong performance across businesses driven by a healthy mix of orders from public and private sectors. However, the company's financial numbers fell short of analysts' estimates on the operating front. The Siemens stock declined by as much as Rs 98.1 — or 2.6 per cent — to Rs 3,680 apiece in intraday trade on BSE. 

After market hours on Tuesday, Siemens — which follows an October-September financial year — reported a 44.2 per cent increase in standalone net profit to Rs 424 crore for the quarter ended June 30 compared with the corresponding period a year ago. Its revenue grew 14.3 per cent to Rs 4,473.1 crore, according to a regulatory filing. 

The company registered a 33.2 per cent rise in earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 504.9 crore, and its margin — a key measure of profitability — came in at 11.3 per cent as against 9.7 per cent for the year-ago period. 

While the company's quarterly net profit and revenue were in line with analysts' estimates, its EBITDA and margin fell short of their projections.   

According to Zee Business research, Siemens was estimated to report a net profit of Rs 406 crore, revenue of Rs 4,452 crore, EBITDA of Rs 525 crore and margin of 11.8 per cent for the third quarter of its financial year.

The company saw 5.9 per cent growth in new orders to Rs 5,288 crore.

What analysts say on the Siemens Q3 results 

UBS maintained a 'buy' rating on Siemens after the earnings announcement with a target price of Rs 4,500, suggesting a 19.1 per cent upside from Tuesday's closing price. The brokerage pointed out that though the company's quarterly net profit was driven by higher other income, its margin was 100 basis points short of its estimate. 

Macquarie retained an 'outperform' rating on Siemens with a target price of Rs 4,100, implying growth of 8.5 per cent for the stock. 

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