Siemens Healthineers' Q2 revenue, net income rise

Headline results for the second quarter:

Revenue

3.5 billion euros ($3.9 billion; in line with forecasts) 

+9%

Profit

381 million euros ($427 million, forecasts of 374 million euros)

+24%

Note: All changes are versus the prior-year period unless otherwise stated 

What the company said:

"The positive volume and profit development in the last quarter underscores the important progress we have made in achieving our full-year targets," said CEO Bernd Montag. "The imaging and advanced therapies businesses in particular have again demonstrated their leading global positions," he said, adding that "the measures taken to ensure a successful market launch of our laboratory diagnostics platform Atellica Solution have shown an early impact in the second quarter."

Montag further noted that steps to reduce installation times for the Atellica Solution mean the number of analysers that are operational and able to book sales had increased to 20 to 30 per week. However, he added that the target to ship between 2200 to 2500 analysers this year remained "very challenging" and that it was likely that the company would fall slightly short of the range. 

Other results:

  • Imaging segment sales: 2.1 billion euros ($2.3 billion), up 10 percent, with "significant growth" in EMEA and "strong growth" in the Americas region
  • Diagnostics segment sales: 1 billion euros ($1.1 billion), up 5 percent, supported by growth in the Asia, Australia and EMEA reporting regions, with more than 410 Atellica Solution analysers shipped
  • Advanced therapies segment sales: 391 million euros ($437 million), up 11 percent, with "significant growth" in Asia, Australia and EMEA regions

Looking ahead:

Siemens confirmed its outlook for fiscal year 2019, with comparable revenue growth to be in the range of 4 percent to 5 percent year-on-year, while earnings per share are still expected to be 20 percent to 30 percent above the level of fiscal 2018.

Chief Financial Officer Jochen Schmitz said Healthineers would likely hit the upper end of its target range for revenue growth, but added that the profit margin would likely be at the lower end of its target. 

What analysts said:

Berenberg analyst Scott Bardo said diagnostics was "still to stage a turnaround" and the placements of 410 Atellica Solution analysers for the quarter were below the implied run rate of 600 machines per quarter at the start of the year. 

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