Siemens (SIEGY) on Thursday reported smaller-than-expected declines in profit and sales for its fiscal second quarter. The multinational technology leader also touted its ability to leverage its growing AI data center investments. SIEGY stock fell on Thursday.
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Siemens' second-quarter profit fell 46% to $1.27 per share, and sales fell about 1% to $20.8 billion. Analysts had expected EPS of $1.21 per share and revenue of $20.76 billion, according to FactSet.
For the full year, Siemens said it expects EPS of $5.65 to $5.95 and revenue of $87.807 billion to $91.184 billion. The company previously expected full-year EPS of $5.60 to $5.90 and revenue of $87.04 billion to $90.39 billion.
Ahead of second-quarter results, analysts had expected full-year EPS of $5.68 per share and revenue of $86.42 billion.
Siemens reported on Thursday that “strong momentum” continues in the data center and power distribution markets. The company added that its appliance business and electrification division were “key growth” drivers. Siemens said it had “won large orders, particularly from data center customers in the United States.”
The company saw a 38% increase in U.S. orders, driven primarily by hyperscale data center projects.
Top hyperscalers that are the largest cloud, data center, and AI providers include Amazon.com (AMZN)'s AWS, Microsoft (MSFT), Meta (META), and Alphabet (GOOGL).
“Unprecedented growth in AI applications is driving massive data center expansion around the world as demand for electricity soars,” CEO Roland Busch said on Thursday's second-quarter earnings call. “
“This market momentum creates many opportunities with existing customers such as hyperscalers and, increasingly, with global colocation operators,” Busch said.
“AI is a supercharger for data center investments for the foreseeable future, and will also lead to increased power demand,” Chief Financial Officer Ralph Thomas added during the company's second-quarter earnings call.
Siemens stock, Ocrolinx
SIEGY stock fell 7% to 94.95 in Thursday market trading. On Wednesday, Siemens shares rose 1.5% to 102.06, above the official buy point of 101.97 on a cup basis, according to MarketSurge analysis.
Prior to Thursday's trading, shares were up more than 7% in 2024. It rose 9% in May after recording consecutive monthly declines.
On February 8, after the first quarter results were announced, Siemens' stock price rose about 1%. Meanwhile, on November 16, 2023, SIEGY stock rose 6% after the company announced its fourth quarter results. On August 10, 2023, Siemens stock fell 5.3% on third-quarter profit and sales.
Siemens reported in February that first-quarter appliance and electrical product orders “benefited from large-scale projects with repeatable and scalable solutions, particularly in the data center business.”
“Don't underestimate data center space either,” Bush told analysts during a first-quarter earnings call in February. “Microsoft (MSFT) produces new products every month, and the demand for truly high-quality, reliable electrified products is very high.”
Last week, S&P 500 member Constellation Energy (CEG) announced it was in talks with major companies to supply nuclear power to its AI data center, with projects expected to grow in size throughout the decade. There is. In December, a memorandum of understanding from OKLO named Siemens as a potential preferred supplier for the Aurora series of small-scale nuclear power plants to be built on site.
Oklo is a nuclear fission company led by OpenAI CEO Sam Altman. The company went public on May 10th through a special acquisition vehicle.
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