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Siemens to Boost Grid Modernization Portfolio With Trayer Buyout

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Siemens Aktiengesellschaft (SIEGY - Free Report) announced that it inked a deal to acquire Trayer Engineering, a medium-voltage secondary distribution switchgear specialist based in the United States. This move aligns with SIEGY’s strategy of expanding its grid modernization product offering.

Siemens & Trayer’s Strategic Integration

Trayer was founded in 1962 as a family business and currently employs 130 people. The company specializes in submersible distribution switchgear, vital for areas prone to flooding or extreme weather. This aligns with Siemens' plan of improving the resilience of North America's distribution grids. 

The companies intend to deliver an end-to-end portfolio to their customers by unlocking resources and competencies and combining their expertise to meet the expanding demand. 

The transaction is expected to complete in 2024, subject to regulatory approvals. Trayer will become part of Siemens' electrification and automation division post-completion. 

SIEGY’s Expanded Portfolio to Aid Distribution Grid Upgrades

Siemens' digital solutions enhance Trayer's robust offerings. The Siemens Xcelerator portfolio, including Electrification X, complements Trayer's solutions. This combination enables utilities and municipalities to upgrade their distribution grids. It also drives grid efficiency in both outdoor and underground applications.

Siemens’ Q3 Top-Line Declines Y/Y

The company came out with third-quarter fiscal 2024 earnings of $1.35 per share. SIEGY posted earnings per share of $2.37 in the second quarter of fiscal 2023. 

Siemens posted revenues of $20.3 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate of $21.5 billion. This compares to year-ago revenues of $21.1 billion million.

SIEGY’s Share Price Performance

Siemens’ shares have gained 26.3% in the past year compared with the industry’s 5.5% growth.

 

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Siemens’ Zacks Rank & Stocks to Consider

SIEGY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Crane Company (CR - Free Report) , Flowserve Corporation (FLS - Free Report) and Cintas Corporation (CTAS - Free Report) . These three companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Crane’s 2024 earnings is pegged at $5.07 per share. The consensus estimate for 2024 earnings has moved north by 6% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 11.2%. CR shares have gained 75.2% in a year.

Flowserve has an average trailing four-quarter earnings surprise of 18.2%. The Zacks Consensus Estimate for FLS’ 2024 earnings is pinned at $2.76 per share, which indicates year-over-year growth of 31.6%. The consensus estimate for 2024 earnings has moved north by 4% in the past 60 days. The company’s shares have gained 27.5% in a year.

The Zacks Consensus Estimate for Cintas’ 2024 earnings is pegged at $16.64 per share. The consensus estimate for 2024 earnings has moved north by 1% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 4%. CTAS shares have gained 60.4% in a year.


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