Germany's Siemens (SIEGY 0.68%) is a lot more resilient than you might think. It has a mix of diversified revenue streams plus an increasing focus on end markets set for long-term growth. Its revenue streams are also internationally diversified, and the valuation remains compelling for a company in excellent shape. Here's why Siemens is an excellent stock to buy for investors looking further afield.Introducing SiemensIn a nutshell, Siemens is a company of three owned businesses (digital industries, smart in ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 6% to €18.4 billion, with a strong profit margin of 15.8% in the industrial business, reaching its highest first-quarter level ever [7][16][41] - Book-to-bill ratio was strong at 1.21, with an order backlog reaching an all-time high of €113 billion despite negative currency effects [4][16] - Earnings per share (EPS) pre-PPA came in at €3.19, with strong operational performance driving it to €2.58 when excluding the Siemens Energy stake tailwind [51] Business Line Data and Key Metrics Changes - Mobility orders grew by 92% to €5.6 billion, significantly driven by large orders, while Smart Infrastructure saw a revenue increase of 9% [16][73] - Digital Industries (DI) revenue slightly decreased by 1%, with automation down by 4%, but software business showed growth of 8.5% [32][62] - Smart Infrastructure's electrification business grew by 20%, with a record order backlog increasing to €17 billion [40][43] Market Data and Key Metrics Changes - Revenue growth was broad-based, with EMEA and the Americas up by 7%, while Asia and Australia grew by 2%, held back by softness in China [10] - The company anticipates regional differences in inventory normalization, with China expected to take longer due to economic recovery speed [11][21] - The U.S. and Europe (excluding Germany) showed double-digit growth, particularly in data centers and power distribution [72][100] Company Strategy and Development Direction - The company is focused on leveraging its record order backlog, launching innovative products, and expanding its ecosystem while confirming guidance for fiscal 2024 [18][76] - There is a strong emphasis on digitalization and sustainability, with partnerships aimed at advancing manufacturing designs and factory operations [25][55] - The company is committed to maintaining a strong grip on working capital and delivering further value creation through profitable growth [45][104] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing destocking globally and a sluggish investment sentiment, particularly in China, but expressed confidence in a sequential improvement in orders in the second half of the fiscal year [79][83] - The company expects economic momentum to pick up, supported by government stimulus and improved investment sentiment [80][83] - Management highlighted the importance of productivity measures and maintaining a strong supply chain to mitigate risks [52][99] Other Important Information - The company closed the acquisition of an 18% stake in Siemens Limited India, accelerating the unbundling of business activities in India [20] - Free cash flow performance improved significantly year-over-year, reaching €1.3 billion in the industrial business [48] - The company completed a €3 billion share buyback program and plans to launch a new program of up to €6 billion [104] Q&A Session Summary Question: What indicators are being used to gauge confidence in sequential improvement in orders? - Management indicated that inventory levels and macroeconomic conditions are being closely monitored, with expectations for improvement post-Chinese New Year [107][110] Question: What is the outlook for the electrification business? - Management emphasized the secular growth trend in electrification driven by energy transformation and the need for reliable power in data centers and semiconductor manufacturing [88][89] Question: How does the company view profitability in Digital Industries? - Management noted that while the economic equation was neutral in Q1, they expect it to improve in the second half of the fiscal year due to productivity measures and backlog execution [126][141]

The most recent trading session ended with Siemens AG (SIEGY) standing at $91.08, reflecting a +1.77% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 1.25%. Elsewhere, the Dow saw an upswing of 0.97%, while the tech-heavy Nasdaq appreciated by 1.3%.The company's shares have seen an increase of 1.16% over the last month, surpassing the Industrial Products sector's loss of 2.19% and falling behind the S&P 500's gain of 1.58%.The upcoming earning ...

Siemens AG (SIEGY) closed the latest trading day at $88.28, indicating a +0.96% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.The company's shares have seen a decrease of 5.97% over the last month, not keeping up with the Industrial Products sector's loss of 0.81% and the S&P 500's gain of 0.94%.The investment community will be paying close attention to the earnings perfor ...

Siemens AG (SIEGY) closed the latest trading day at $86.46, indicating a -1.05% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.Heading into today, shares of the company had lost 5.27% over the past month, lagging the Industrial Products sector's loss of 0.85% and the S&P 500's gain of 1.2% in that time.Analysts and investors alike will be keeping a close eye on the performance of Siemen ...

| --- | --- | |----------------------------------------------------------------------------------------------------------------------|-------| | | | | Powerful finish to record fiscal year | | | Roland Busch, CEO Siemens AG | | | Ralf P. Thomas, CFO Siemens AG Unrestricted \| © Siemens 2023 \| Investor Relations \| Q4 Analyst Call \| 2023-11-16 | | | --- | --- | |--------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Orders reached €92 billion, up 7% from previous high levels, while revenue grew by 11%, at the upper end of guidance [9] - Free cash flow exceeded €10 billion for the first time, increasing by 23% year-over-year, representing almost 13% cash return on sales [10][73] - Basic earnings per share more than doubled to €9.93, crossing the €10 mark for the first time [10] Business Line Data and Key Metrics Changes - Digital Industries revenue grew by 15% on a comparable basis, with a profit margin of 22.6%, a record high [11] - Infrastructure business grew by 15%, achieving a profitability level of 15.4% [12] - Mobility revenue accelerated by 50%, with annual order intake exceeding €20 billion and a book-to-bill ratio around 2 [12] Market Data and Key Metrics Changes - EMEA region saw a revenue increase of 13%, Americas grew by 11%, while Asia-Australia grew by 4%, impacted by softness in China [18] - Automation orders normalized, with a book-to-bill ratio of 0.83, reflecting a decrease in demand [41] - Revenue growth in automation was driven by strong backlog execution in Europe, with Germany up 18% and Italy 23% [50] Company Strategy and Development Direction - Siemens aims to leverage automation, digitalization, electrification, and sustainability trends to empower customers [5][6] - The company is focused on scaling offerings through the Siemens Xcelerator platform, enhancing partnerships to drive growth [7][20] - A strategic investment of €2 billion is planned to boost innovation and resilience, including a new high-tech manufacturing factory in the U.S. [30][31] Management's Comments on Operating Environment and Future Outlook - Management anticipates a muted global economic development but expects further value creation growth in 2024 [18][77] - The company will remain vigilant and flexible in response to market developments, with a focus on productivity and cost management [17][77] - Despite challenges in growth markets like China, management is confident in maintaining a net positive economic equation for fiscal 2024 [86][87] Other Important Information - The company proposed a dividend of €4.70, reflecting a progressive dividend policy [75] - A new share buyback program of up to €6 billion is planned following the completion of the current program [76] - The SaaS transition in digital industries is on track, with annual recurring revenue growth of 15% in Q4 [27] Q&A Session Summary Question: Regarding the DI margin guidance and potential slower margins - Management acknowledged challenges in growth markets like China and the impact of destocking on margins, highlighting unfavorable exchange rates and product mix as contributing factors [86] Question: What is the outlook for the automation business and software mix? - Management indicated that while there are challenges, they are committed to investing in R&D and expect a pickup in demand in the second half of fiscal 2024 [87]

Siemens Aktiengesellschaft (OTCPK:SIEGY) Q3 2023 Earnings Conference Call August 10, 2023 3:30 AM ET Company Participants Eva Scherer - Head, IR Roland Busch - President & CEO Ralf Thomas - CFO Conference Call Participants Alexander Virgo - Bank of America Ben Uglow - Morgan Stanley Andrew Wilson - JPMorgan Gael de-Bray - Deutsche Bank Simon Toennessen – Jefferies Daniela Costa - Goldman Sachs Philip Buller - Berenberg Operator Good morning, ladies and gentlemen, and welcome to the Siemens 2023 Third Quarte ...

| --- | --- | --- | |---------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Continued profitable growth and excellent free cash flow | | | | | | | | Roland Busch, CEO Siemens AG Ralf P. Thomas, CFO Siemens AG | | | | | | | | Unrestricted \| © Siemens 2023 \| Investor Relations \| Q3 Analyst Call \| 2023-08-10 | | | Notes and forward-looking statements This document contains statements related to our future business a ...

Financial Data and Key Metrics Changes - Orders increased to €23.6 billion, a growth of 15%, with a record order intake for mobility and a 9% increase in Smart Infrastructure [6][11] - Revenue grew by 15% to over €19 billion, with Digital Industries, Smart Infrastructure, and Mobility each contributing over 20% [7][8] - Industrial business profit reached €2.6 billion, with an EPS pre PPA of €2.56, excluding a noncash effect from Siemens Energy [13][80] Business Line Data and Key Metrics Changes - Digital Industries (DI) saw a revenue increase of 23%, with automation revenue up by 26% [40][43] - Smart Infrastructure (SI) achieved a revenue growth of 21%, driven by a 34% increase in the electrification business [57][58] - Mobility reported a substantial revenue increase of 33%, with orders at €6.2 billion marking an all-time high [68][69] Market Data and Key Metrics Changes - The overall market growth is expected to average 7% annually until 2027, with a significant contribution from software and digital services [16] - In China, revenue growth was 9%, while Germany and Italy saw increases of 37% and 35%, respectively [53][64] - The U.S. market showed strong performance with double-digit growth in both discrete and process automation [53] Company Strategy and Development Direction - The company aims to leverage its order backlog and execution strength to achieve profitable growth, with a focus on digitalization and sustainability [9][16] - Strategic investments will continue in organic growth, targeted acquisitions, and divestments to optimize the portfolio [17][19] - The company is expanding its footprint in the U.S. and Europe, with new facilities and increased capacities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of fiscal 2023, raising guidance for revenue growth to 9% to 11% and EPS to €9.60 to €9.90 [11][80] - The macroeconomic environment remains volatile, but the company is well-positioned to capitalize on market opportunities [11][80] - Supply chain constraints have eased, allowing for improved capacity utilization and customer deliveries [7][9] Other Important Information - The SaaS transition in Digital Industries is progressing well, with annual recurring revenue growth of 15% [10][29] - The company is focusing on sustainability and digital transformation, with significant investments in cloud and software solutions [30][31] - A joint venture, Cofinity-X, was established to create a collaborative data network in the automotive industry [35] Q&A Session All Questions and Answers Question: TAM growth and market share ambitions - Management confirmed that the total addressable market (TAM) growth is expected to be 7% by 2027, and the company aims to increase its market share [83][85] Question: Siemens Energy stake and capital allocation - Management stated that they are not in a hurry to sell their stake in Siemens Energy and will provide updates in the annual press conference [87][89] Question: Insights on DI orders and automation - Management indicated that software orders have positively impacted DI, while automation orders are expected to normalize in the coming quarters [96][100] Question: Dynamics in China and inventory management - Management noted that the recovery in China is slow, but they expect normalization of backlog and delivery times to improve in the coming months [110][118]