Siemens Healthineers Q1 Profit Climbs, Confirms FY21 View; Stock Up

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Shares of Siemens Healthineers were gaining around 3 percent in the German trading after the medical technology company confirmed Monday its recently revised outlook for fiscal 2021 after reporting higher profit in its first quarter.

The quarterly results were driven by strong revenue growth in all segments, mainly Diagnostics with strong demand for rapid COVID-19 antigen tests.

Looking ahead for fiscal 2021, the company projects adjusted EBIT margin to improve 100 basis points from last year.

As announced on January 26, the company now expects fiscal 2021 comparable revenue growth of 8 percent to 12 percent, compared to prior estimation of 5 percent to 8 percent.

The company also increased its annual earnings per basic share to a range 1.63 euros - 1.82 euros from the previous outlook of 1.58 euros - 1.72 euros. This is compared to previous year's earnings of 1.61 euros per share.

Siemens Healthineers said the projected higher growth the new year is due to faster recovery and higher than expected opportunities. Imaging segment's revenue would return to growth at or above 7 percent; Diagnostics would grow at least in the mid-teens; and Advanced Therapies would return to growth at or above 6 percent.

The company now expects rapid COVID-19 antigen test revenue to be between 300 million euros and 350 million euros, compared to the previous assumption of about 100 million euros.

The company said, "Given the dynamic of the pandemic, we assume that the pandemic-related demand will not persist to the same extent through the remaining fiscal year 2021 and beyond. Furthermore, we expect that the investment activity in the U.S. will begin to pick up during the current fiscal year."

The Annual Shareholders' Meeting of Siemens Healthineers will take place on February 12.

For the first quarter, net income climbed 44 percent to 437 million euros from last year's 304 million euros. Basic earnings per share were 0.40 euro, up 34 percent from 0.30 euro a year ago.

As announced on January 26, adjusted basic earnings per share were 0.49 euro, compared to 0.36 euro a year ago.

Adjusted EBIT climbed 52 percent from last year to 738 million euros, and adjusted EBIT margin was 19.1 percent, up 550 basis points from 13.6 percent a year ago.

Quarterly revenue grew 7.8 percent to 3.87 billion euros from last year's 3.59 billion euros. Comparable revenue growth was 13.3 percent with growth in all segments.

The company recorded comparable revenue growth of 23.5 percent in Diagnostics supported by the high demand for rapid COVID-19 antigen tests in Europe, C.I.S., Africa, Middle East or EMEA.

In Germany, Siemens Healthineers shares were trading at 47.45 euros, up 2.53 percent.

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