Siemens Earnings: Resilient Performance Despite Slowdown in Automation Sector

Wide-moat Siemens delivered a solid first-quarter fiscal 2024, confirming that the business is well positioned for several secular growth themes, which helped offset weakness in its short-cycle automation business. Its organic order intake grew 2% to EUR 22.3 billion, exceeding company-compiled consensus of EUR 20.5 billion and outperforming its peer ABB, which has already reported its results. Management confirmed full-year revenue guidance between 4% and 8%, provided previously. A book/bill ratio of 1.2 times and a record EUR 113 billion order backlog give us confidence Siemens will achieve its target. We maintain our EUR 166 fair value estimate and view shares as fairly valued.