Schneider Electric Confirms Outlook After Revenue Rises — Update
By Nina Kienle
Schneider Electric reported a rise in revenue for the first quarter and reaffirmed its full-year targets, citing strong demand across most sectors and regions.
The French group said revenue for the first quarter came in at 8.61 billion euros ($9.21 billion), up 5.3% organically on year and beating analysts' expectations of EUR8.57 billion, according to estimates provided by the company.
Performance was boosted by strong demand across most sectors and regions, particularly in data centers and infrastructure, the company said. Data-centers notched up strong double-digit growth that was broad-based across its regions, with a strong performance in North America, Western Europe and the rest of the world division, Schneider said.
Last week, the company confirmed that it was in talks with engineering-software company Bentley Systems about a potential strategic transaction in a deal likely valued at more than $15 billion. Many deals in recent years caused concern at their announcement but ultimately proved to be well-timed and structured, putting the company in an advantageous position, Berenberg analysts said in a note to clients. "One of the key things that Schneider has got right over the years is structuring deals in a value-accretive way for shareholders," they said.
For 2024, the company reaffirmed its estimates. It continues to forecast adjusted earnings before interest, taxes and amortization of between 8% and 12% organically and organic revenue growth between 6% to 8%.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
April 25, 2024 02:31 ET (06:31 GMT)
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