Progress in medicine allows most people to live significantly longer than their ancestors and experience old age in good health. Siemens Healthineers contributes to this with innovative products for medical imaging, helping doctors to get the right perspective in their diagnoses.

Small dip in revenue and profit development When looking at the development of fundamental indicators, you can see that the bars for 2023, unlike the previous two years, have not grown but have fallen slightly shorter. The reason for this is the collapse of the business with Covid19 antigen rapid tests. For the first quarter of the current financial year, which ended on December 31, 2023, things are already looking better: revenues in the first quarter increased from 5.1 billion euros compared to the previous year to 5.2 billion euros.

The company has thus slightly exceeded market expectations. Adjusted earnings before interest and taxes increased by eight percent to 742 million euros compared to the previous year. The forecasts were met exactly, resulting in an adjusted EBIT margin of 14.3 percent, above the level of the previous year’s quarter – an all-around very positive development, especially since the outlook for the full year has also been confirmed!

Revenue and profit development of Siemens Healthineers; Source: aktienscreener.com

How did the market react to the numbers? For us as traders, the price development after the numbers is more interesting than the numbers themselves. And in this case, it is clear. After the publication on February 1, a rally started, which brought a plus of around 4 percent until the last daily candle in the chart. Almost incidentally, a new uptrend with higher lows and higher highs will establish itself. We just don’t know where the new high will be. At the same time, the security has equalized the price gap from last May. If it stabilizes at the current level, the medical technology stock would be a candidate for our long watchlist.

Siemens Healthineers share (ISIN DE000SHL1006) – 1 year in daily chart; Source: aktienscreener.com

Conclusion Stay healthy and consider the upcoming quarterly figures on April 18 in your trades!