Siemens Posts Q3 Revenues Growth, Industrial Business Profit Dips Y/Y, Reaffirms FY23 Outlook

Siemens AG (OTC: SIEGY) reported Q3 FY23 revenue growth of 6% Y/Y (+10% Y/Y on a comparable basis) to €18.9 billion.

Q3 FY23 revenues missed the consensus estimate of €19.27 billion, as per Reuters.

Orders rose 10% Y/Y (+15% Y/Y on a comparable basis) to €24.2 billion, beating the consensus of €22.19 billion, led by increased large orders in the Mobility business. 

Profit Industrial Business fell 4% Y/Y to €2.75 billion (missing the consensus of €2.90 billion). Also, margins contracted to 15.3% from 17.0% a year ago.

Basic EPS stood at €1.61 vs. a loss of €(2.06) in the prior year. EPS before purchase price allocation (PPA) was €1.78.

Siemens Energy Investment witnessed a loss of €(0.6) billion vs. a loss of €(2.9) billion a year ago.

Siemens generated €3.0 billion in free cash flow.

"We again achieved profitable growth and showed our competitive strength across all our businesses. We have seen normalization of demand, particularly in China and in short-cycle business. I'm very pleased that our financial performance was again strong and resilient. We continue to execute our strategy of creating high-value growth and accelerating our customers' digital transformation and sustainability journeys," said Roland Busch, President and Chief Executive Officer.

FY23 Outlook Reaffirmed: Siemens reiterated FY23 guidance of comparable revenue growth (net of currency translation and portfolio effects) at 9% to 11% and a book-to-bill ratio above 1.

Siemens continues to expect EPS pre-PPA outlook at €9.60 to €9.90 in FY23.

The company revised Digital Industries' comparable revenue growth to 13%-15% (vs. up 17%-20% Y/Y prior), with profit margin at 22%-23% (vs 22.5%-23.5% earlier). 

Smart Infrastructure's comparable revenue growth reiterated at 14%-16% and a profit margin of 14.5%-15.5%. 

The company also continues to expect Mobility's comparable revenue growth at 10%-12% and a profit margin of 8%-10%.

Price Action: SIEGY shares closed at $80.27 on Wednesday.