Shares of the German industrial conglomerate
), reached a new 52-week high of $133.57 on Nov 27. Its share
prices have been on an uptrend after the company announced a
favorable fiscal 2014 outlook. The closing price of the
industrial goods manufacturer on Nov 27 was $133.22, representing
a solid 1-year return of 29.3% and year-to-date return of roughly
The company reported mixed fiscal fourth-quarter 2013 results
on Nov 7, 2013, with an earnings miss and a beat on the revenue
front, with respect to the Zacks Consensus Estimate. However, its
positive outlook for recovery of its short-cycle businesses in
the latter half of fiscal 2014 and a guidance of at least 15%
rise in earnings for fiscal 2014 were key drivers.
Also, the "Siemens 2014" -- a cost cutting program by the
company is expected to reap benefits in 2014. The "Siemens 2014"
restructuring program, launched in fiscal 2013, targets
sustainable value creation. This program targets sustainable
value creation and aims to raise net profit from its sectors by
at least 12% during fiscal 2014. The "Siemens 2014" program is
expected to augment long-term growth.
Estimates have been rising for this company after it released
a positive outlook for fiscal 2014. The Zacks Consensus Estimates
of earnings for 2014 was revisedupwards by 3.8% to $9.23 per
Moreover, investors' sentiment got a boost on share buyback
announcement during the company earnings release. The company
plans to repurchase stock worth $5.4 billion (4 billion euros) in
the next two years.
Also, the company is in advanced talks with a private equity
player AEA Investors, to divest its water technologies business
for roughly $800 million. This divestment is expected to solidify
Siemens liquidity position.
Moreover, Siemens' global leadership in most of its key
businesses; including industrial automation, power generation,
medical equipment and transportation; is encouraging.
Other Stocks to Consider
Siemens presently has a Zacks Rank #3 (Hold). Better-ranked
stocks in the industry worth reckoning include
Mistras Group, Inc.
), each carrying a Zacks Rank #2 (Buy).
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SIEMENS AG-ADR (SI): Free Stock Analysis
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