Siemens, the German industrial company, experienced a decline in shares following the release of its third-quarter revenue and earnings report that fell below expectations. The company's stock dropped by 2.5% to EUR142.80, falling as much as 4.4% initially.
For the April-to-June period, Siemens reported a 10% growth in revenue to 18.9 billion euros ($20.7 million). Orders also saw an increase, rising by 15% to EUR24.2 billion compared to EUR22.0 billion in the same period last year. Moreover, net profit amounted to EUR1.4 billion, a significant improvement from the net loss of EUR1.5 billion in the previous year's corresponding period.
However, revenue fell short of expectations by 2%, and earnings before interest, taxes, and amortization were 5% below expectations, according to Deutsche Bank analyst Gael de-Bray. While the overall results were somewhat disappointing, group orders surpassed consensus by 9%, with a strong book-to-bill ratio of 1.28, driven by significant orders in the mobility sector.
Deutsche Bank also noted that excluding Siemens Energy, the company's projected earnings per share before purchase price allocation accounting were estimated to be in the range of EUR9.6 to EUR9.9. This could potentially result in a 1.5% decrease in consensus at the midpoint.
Overall, Siemens' Q3 results demonstrate both areas of success and underperformance, contributing to the fluctuations experienced in its stock value.