By Pierre Bertrand

Siemens AG shares rose Thursday after the German industrial company exceeded expectations for its first quarter and increased its guidance for fiscal 2023.

At 0914 GMT shares traded 7.0% higher at EUR149.94.

Siemens reported 1.48 billion euros ($1.59 billion) in net profit for the quarter ended in December compared with EUR1.64 billion in the previous year, on revenue that grew 10% to EUR18.07 billion.

It posted EUR22.62 billion in first-quarter orders, a decline of 7% from the same period of fiscal 2022.

The result exceeded analysts' expectations of EUR1.45 billion in net profit and EUR20.84 billion in orders, but fell short of expectations of the EUR18.13 billion analysts had expected in revenue, according to a company-provided consensus.

On the back of the strength of its order backlog, Siemens upgraded its outlook for fiscal 2023--saying it now expects comparable revenue growth, net of currency translation and portfolio effects, between 7% and 10%. It had previously guided for the metric to be in the range of 6% to 9%.

It also increased its guidance for its digital industries and smart infrastructure businesses.

Siemens expects its digital industries business to achieve fiscal 2023 comparable revenue growth of 12% to 15%, up from 10% to 13% previously, with a 20% to 22% profit margin, up from 19% to 22% previously.

Smart infrastructure is expected to report comparable revenue growth of 9% to 12%, compared with 8% to 11% previously, with a profit margin between 13.5% to 14.5%, compared with 13% to 14% previously.

Siemens increased its basic earnings per share expectations from net income before purchase price allocation accounting to a range of EUR8.90 to EUR9.40. It had previously expected EUR8.70 to EUR9.20.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 09, 2023 04:30 ET (09:30 GMT)

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