Siemens Healthineers Reports Strong First-Quarter Earnings

Siemens Healthineers $SMMNY has recently released a financial report for the first quarter, surpassing analysts' expectations. The company achieved this despite a 6% drop in sales in China, which was offset by a 16% revenue increase in the United States. These fluctuations are attributed to ongoing order fulfillment delays in China.

The anti-corruption campaign launched in China in July 2023 has significantly influenced many med-tech companies, including Siemens Healthineers. Hospitals cutting back on equipment orders have contributed to slower growth in the company’s third-largest market, the Asia-Pacific region, and Japan.

Positive Financial Performance

- Revenue: In the first quarter of 2023, Siemens Healthineers reported revenue of €5.48 billion ($5.69 billion), marking a 5.9% increase compared to the same period last year. This figure exceeded the consensus estimate of €5.37 billion, according to Vara Research.

- EBIT: Adjusted earnings before interest and taxes (EBIT) also met expectations, reaching €822 million, compared to the anticipated €802 million.

Future Projections and Plans

Siemens Healthineers has confirmed its forecast for 2025. The company expects a comparable revenue growth of 5% to 6% compared to 2024. Additionally, the adjusted basic earnings per share are projected to be between €2.35 and €2.50.

In light of the anti-corruption campaign in China's healthcare sector, Western companies are experiencing a slowdown in demand for their products and services in this region. The CEO of Philips $PHG mentioned in January that they continue to expect a decrease in demand in China due to governmental anti-corruption efforts.