German industrial conglomerate Siemens (SIEGY 1.41%) was a somewhat under-the-radar winner on the stock exchange on Friday. The company’s shares enjoyed a more than 1% bump in price, as investors continued to disseminate the latest earnings release and two analysts raised their price targets. Siemens’ slight rise was robust enough to beat the flatlining S&P 500 (^GSPC -0.01%) that day.
Growth where it counts
Friday’s analyst moves were a reaction to the earnings release, which was published Thursday morning. This revealed that Siemens’ first quarter of its fiscal 2025 featured a 3% year-over-year increase in revenue to 18.4 billion euros ($19.2 billion).
The company reported that orders were up in all of its industrial segments save for Mobility; however, this dip resulted in an overall 7% slump to slightly more than 20 billion euros.
Regarding profitability, thanks largely to an asset divestment, Siemens managed to crank its headline net income 52% higher, to almost 3.9 billion euros for the period, shaking out to 4.86 euros per share. The first quarter of fiscal 2024 saw it net 2.5 billion euros.
According to Reuters, the consensus analyst estimate for revenue was barely over 18 billion euros. That for the company’s foundational industrial segment was 2.4 billion euros; the company earned 2.5 billion euros.
Another positive was a remark by CEO Roland Busch, who clearly referenced the aims of the Trump administration by saying that the company would be able to thrive “even in the face of the current, politically motivated tariff regimes and potential countermeasures.”
A pair of pundits pushed up their price (targets)
With that solid quarterly performance, the pair of analysts made upward adjustments to their price targets. Morgan Stanley‘s Max Yates now feels that Siemens’ stock is worth 240 euros per share, up by 5 euros from his previous level. His peer Mark Fielding at RBC Capital increased his price target to 245 euros from 220 euros. Both kept their buy recommendation equivalents intact.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
