By Marleen Kaesebier and Jörn Poltz
(Reuters) -Siemens Healthineers met its annual revenue and profit growth forecast on Wednesday, as strength in its Imaging segment and U.S. cancer treatment unit Varian in the fourth quarter outweighed weakness in China, sending its shares up 8.1%.
The German medical technology company’s comparable revenue growth was at 4.7% for the year ended Sept. 30, slightly missing analysts’ forecast of 4.8%, according to a Vara Research-compiled consensus. It was at the lower end of the company’s 4.5%-6.5% estimate.
Adjusted earnings before interest and taxes (EBIT) at 3.5 billion euros ($3.77 billion) also met analysts’ estimates.
In China, revenue declined by a mid-single-digit percentage in the fourth quarter on currently delayed customer orders, the company said, but it sees “very strong” comparable revenue growth in the Americas.
Last week, rival medical devices maker Philips cut its 2024 sales outlook after flagging that demand for its products in China was hit by deteriorating consumer confidence in the country and the ongoing state-led anti-corruption campaign, which led to Chinese hospitals cutting back orders.
“We assume China revenue in the first half of fiscal year 2025 to decline mid-single-digit to high-single-digit percentage points,” Siemens Healthineers CFO Jochen Schmitz said in a press briefing.
“In the second half of 2025, we assume revenue to be roughly at the level of the second half of fiscal 2024.”
CEO Bernd Montag reiterated that the management believes China will stay attractive in the mid- and long-term.
The company expects a 5%-6% comparable revenue growth in 2025 and the adjusted basic earnings per share to be between 2.35 euros and 2.50 euros.
It also confirmed mid-term targets beyond 2025 and said it expects high-single-digits 2025 revenue growth in its Varian segment and a “mid-single-digits” revenue growth in Imaging, after the latter grew 7.7% in the fourth quarter, largely beating analyst expectations of 6.7%.
($1 = 0.9294 euros)
(Reporting by Marleen Kaesebier and Joern Plotz; Editing by Sumana Nandy and Rashmi Aich)
