Siemens Healthineers Q2 Revenues Rise 2 Percent With Gains in Dx and Advanced Therapies

Original from: 360dx

Siemens Healthineers on Tuesday reported that its revenues rose about 2 percent on a reported basis and 3 percent on a comparable basis during its fiscal second quarter on rising sales of its non-COVID diagnostics products and its advanced therapies products.

For the three months ended March 31, the firm announced revenues of €5.44 billion ($5.86 billion) compared to €5.35 billion in the prior-year quarter. 

The Erlangen, Germany-based firm's Q2 Diagnostics' revenues were €1.10 billion on an adjusted basis, up 2 percent from €1.08 billion in the year-ago quarter. The firm said revenues were up 4 percent on a comparable basis.

Company officials attributed the rise to strong growth in the Europe, Middle East, and Africa (EMEA) region and moderate growth in the Americas, although slight declines in the Asia-Pacific and Japan region and a mid-single-digit decline in China partially offset those gains. The firm also reported that it continues to see cost reduction benefits from its multiyear program to transform its diagnostics business as well as from a longer useful life of its leased laboratory analyzers.

Meanwhile, Siemens' Imaging segment reported adjusted revenues of €2.96 billion, up about 1 percent compared to €2.92 billion one year earlier on strong growth in its molecular imaging and magnetic resonance businesses. It said revenues in the segment were up 3 percent on a comparable basis.

The firm posted Varian Medical Systems adjusted revenues of €910 million, down about 3 percent from €934 million in the prior-year quarter on a low double-digit decline in revenues in China, a mid-single-digit decline in the Asia-Pacific and Japan region, and a slight decline in the EMEA region, partly offset by slight growth in the Americas. The firm said revenues in the segment were down about 2 percent on a comparable basis.

Lastly, the firm reported Advanced Therapies division adjusted revenues of €526 million, up about 6 percent year over year from €498 million with sharp growth in the Asia-Pacific and Japan and EMEA regions and moderate growth in the Americas, which more than made up for a low double-digit decline in China. Revenues in the segment were up 8 percent on a comparable basis.

The firm reported Q2 net income of €431 million, or €.38 per share, compared to €108 million, or €.09 per share, in Q2 2023. Its adjusted EPS was €.55 per share.

Siemens' fiscal Q2 R&D expenses were €474 million, down about 2 percent compared to €465 million in the year-ago quarter. Its SG&A expenses were €899 million in the recently completed quarter compared to €903 million a year earlier.

The company ended fiscal Q2 with €2.31 billion in cash and cash equivalents.

The firm confirmed its outlook for fiscal year 2024 and expects comparable revenue growth of between 4.5 percent and 6.5 percent, or 5.0 percent to 7.0 percent excluding revenue from COVID-19 antigen testing. Adjusted EPS is anticipated to be between €2.10 and €2.30.

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Source: Siemens Healthineers Q2 Revenues Rise 2 Percent With Gains in Dx and Advanced Therapies