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Siemens Healthineers Q3 Diagnostics Revenues Almost Double on Rapid Antigen Test Demand

NEW YORK – Siemens Healthineers on Friday said that its fiscal third quarter revenues rose 51 percent year over year while its Diagnostics revenues rose 98 percent, driven by sales of COVID-19 rapid antigen tests.

For the three months ended June 30, the Erlangen, Germany-based company reported total revenues of €5.00 billion ($5.94 billion) compared to €3.31 billion in Q3 2020. The firm's Diagnostics revenues grew to €1.72 billion from €869 million in Q3 2020.

Though its Q3 2020 Diagnostics revenues were encumbered by the COVID-19 pandemic, rapid COVID-19 antigen test revenues peaked in the recently completed quarter, contributing around €600 million, the firm said.

Siemens Healthineers added that its core Diagnostics business continued to grow as testing volumes for routine care normalized. All regions posted substantial growth, with Europe, the Middle East, and Africa standing out because of rapid COVID-19 antigen test sales.

Without COVID-related revenues from its antigen, antibody, and PCR tests, Diagnostics "continued to post solid comparable growth numbers in Q3," Siemens Healthineers CFO Jochen Schmitz said on a conference to discuss the financial results.

Excluding antigen sales in Q3, year-over-year Diagnostics growth "would still be well above 30 percent," he said.

Year-to-date, the firm has booked about €920 million in rapid antigen test sales. Nonetheless, "with the pandemic getting … under control, we expect the importance of antigen tests to diminish," Schmitz said, adding that rapid antigen test revenues are expected to decline sharply in Q4.

Nonetheless, the firm's core diagnostic testing growth continues to stabilize, Schmitz said, adding, "We do not expect any material adverse effects from the ramping down of the antigen testing business in the coming quarters."

In other business segments, Siemens Healthineers Imaging revenues were €2.38 billion, up 13 percent from €2.11 billion in the prior-year quarter. Its Advanced Therapies revenues were €397 million, up 7 percent year over year from €372 million.

Revenues from Varian were $591 million. Siemens Healthineers completed the purchase of the Palo Alto, California-based company for $16.4 billion in April.

Siemens Healthineers posted a Q3 net income of €395 million, or €.35 per share, compared to €271 million, or €.27 per share, in Q3 2020. Its adjusted EPS was €.56.

Its R&D expenses were €403 million, up 23 percent year over year from €328 million, and its SG&A expenses were €843 million, up 59 percent year over year from €529 million.

The company ended the recently completed quarter with €1.24 billion in cash and cash equivalents.

Siemens Healthineers revised its outlook for this full fiscal year, saying it anticipates comparable revenue growth of between 17 percent and 19 percent, up from a previously announced guidance of between 14 percent and 17 percent growth. The company now expects adjusted basic earnings per share of between €1.95 and €2.05, up from a previous estimate of between €1.90 and €2.05.

Varian revenues are not reflected in its comparable revenue growth expectations.

In the Diagnostics segment, the company expects comparable revenue growth of more than 35 percent in fiscal year 2021, up from a previously announced expected growth of more than 25 percent. The outlook assumes that its Diagnostics segment will generate around €1 billion from rapid COVID-19 antigen tests, up from an earlier guidance of around €750 million.