Siemens shares leap on strong Q4 results and buyback plan

Siemens AG (OTC:SIEGY)’s stock experienced a notable 5.5% rise today, reaching EUR146.48 following the company’s release of its fourth-quarter financials, which outstripped market expectations. The German industrial giant reported robust revenues of EUR21.39 billion ($23.20 billion) alongside orders amounting to EUR21.80 billion, marking a year-over-year increase of 10% in revenue and 6% in orders.

The company also showcased an impressive free cash flow of EUR4.6 billion, surpassing forecasts by a significant 42%. This financial strength has prompted Siemens to propose an increased dividend of EUR4.70 per share and to initiate a substantial EUR6 billion share buyback program.

Analysts at Berenberg have lauded Siemens for its commendable performance across all metrics, particularly highlighting its order intake and profitability.

Despite these strong results, Siemens has cautioned investors about the potential for slower revenue growth in the coming year. The company anticipates a delay in the global demand recovery for automation products, which it expects will not begin to pick up until the latter half of the year. This forward-looking statement underscores the challenges facing the automation industry amidst broader economic uncertainties.