Siemens Healthineers AG (ETR:SHL) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.1% to hit €5.5b. Statutory earnings per share (EPS) came in at €0.42, some 4.3% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Siemens Healthineers XTRA:SHL Earnings and Revenue Growth February 9th 2025

Taking into account the latest results, the consensus forecast from Siemens Healthineers' 17 analysts is for revenues of €23.8b in 2025. This reflects a modest 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 20% to €2.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of €23.7b and earnings per share (EPS) of €2.12 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €61.60. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Siemens Healthineers analyst has a price target of €69.10 per share, while the most pessimistic values it at €49.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Siemens Healthineers' revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2025 being well below the historical 10.0% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% annually. So it's pretty clear that, while Siemens Healthineers' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Siemens Healthineers. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Siemens Healthineers analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Siemens Healthineers that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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