Shares in Siemens (ETR:SIEGn) Healthineers popped more than 7% Wednesday after the company achieved its full-year targets for revenue and profit growth, as strong performances from its Imaging division and the U.S.-based cancer treatment unit, Varian, in the fourth quarter compensated for softer results in China.
The German medtech giant reported comparable annual revenue growth of 4.7% for the fiscal year ending Sept. 30, just below analysts' consensus forecast of 4.8% as compiled by Vara Research, and hitting the low end of Siemens Healthineers' projected 4.5%-6.5% range.
Adjusted EBIT reached 3.5 billion euros ($3.77 billion), aligning with analysts' expectations.
In China, revenue fell by a mid-single-digit percentage in the fourth quarter due to delayed customer orders, although Siemens Healthineers noted "very strong" comparable revenue growth in the Americas.
"We assume China revenue in the first half of fiscal year 2025 to decline mid-single-digit to high-single-digit percentage points," said the company’s CFO Jochen Schmitz.
"In the second half of 2025, we assume revenue to be roughly at the level of the second half of fiscal 2024,” he added.
CEO Bernd Montag emphasized that, despite current challenges, China remains a valuable market for the medium and long term.
Looking ahead, Siemens Healthineers forecasts comparable revenue growth of 5%-6% in 2025 and anticipates adjusted basic earnings per share between 2.35 euros and 2.50 euros.
While the earnings guidance sits slightly below the consensus estimate of €2.53, investors “may welcome an initially cautious guide, leaving room for upgrades if/when China normalizes,” Jefferies analysts commented.
“With shares broadly flat YTD, we believe the valuation is appealing,” they noted.