Siemens stock: New record high after strong quarterly earnings

Last Updated: 13. Februar 2024By

After the strong quarterly results, Siemens shares reached a new all-time high on Thursday, February 8th, 2024. On Friday, however, the industrial conglomerate reversed course. We will now take a closer look at the reasons for this and whether the stock remains a basic investment.

Leading company in automation and digitalization Siemens is a leader in electronics and electrical engineering. The company is primarily active worldwide in the fields of intelligent infrastructure for buildings and decentralized energy systems, as well as automation and digitalization in the process and manufacturing industry. Through Mobility, one of the leading providers of intelligent mobility solutions for rail and road traffic, Siemens also shapes the global market for passenger and freight transport.

Increases in sales and earnings in the first quarter The technology company recorded increases in sales and earnings in the first quarter of the fiscal year. Revenues in the three months ending in December rose by 2% to 18.4 billion euros, as the company announced on February 8th, 2024. On a comparable basis, the increase was 6%, with currency and portfolio effects being excluded. The business with industrial automation developed weaker, but this was offset by increases in the intelligent infrastructure and mobility divisions.

Orders received increased by 2% on a comparable basis to 22.3 billion euros, which was significantly better than expected by the market. Siemens benefited from large orders in the mobility division. After taxes, the industrial conglomerate achieved a 50% increase in earnings to around 2.5 billion euros. Siemens reaffirmed its outlook for the 2023/24 fiscal year and expects further increases in sales and profits.

Ex-dividend causes share price setback Investors should not panic about the share price setback from last Friday, as it had a simple reason. In addition to the numbers, Siemens also held its annual general meeting. A dividend of 4.70 euros per share was decided. On Friday, the share was then traded ex-dividend. Investors can look forward to the money in their accounts. Positive signals also come from analysts. Bernstein Research has confirmed its „Outperform“ rating and a price target of 190 euros for Siemens after the first quarterly results.

Siemens share in weekly chart – ISIN: DE0007236101


Evaluation and technical chart view The Siemens share is valued at a P/E ratio of 16e2024. The dividend yield is expected to be 3% in fiscal year 2024. The stock is in an uptrend. With the breakout to a new all-time high, a technical buy signal was generated.

Conclusion The numbers confirm that Siemens remains on course. Investors can look forward to the dividend. A new all-time high should only be a matter of time. For you, this means that building or expanding a position remains an option.