How the Wheels Came Off Siemens' Bus
Siemens (NYS: SI) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q3), Siemens beat expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, and net margins increased.
Siemens chalked up revenue of $24.77 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $24.09 billion on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $25.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.66. The one earnings estimate compiled by S&P Capital IQ predicted $2.06 per share. GAAP EPS of $1.17 for Q3 were 54% higher than the prior-year quarter's $0.76 per share. (The prior-year quarter included -$0.43 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 60 basis points worse than the prior-year quarter. Operating margin was 8.6%, 90 basis points worse than the prior-year quarter. Net margin was 4.2%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.20 billion. On the bottom line, the average EPS estimate is $2.09.
Next year's average estimate for revenue is $94.63 billion. The average EPS estimate is $8.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 918 members out of 959 rating the stock outperform, and 41 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Siemens a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Siemens is outperform, with an average price target of $116.44.
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The article How the Wheels Came Off Siemens' Bus originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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