Earnings Alerts

Schneider Electric SE (SU) Earnings: Q1 Revenue Falls Short of Estimates Despite Strong Organic Growth

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  • Schneider Electric’s first-quarter revenue was EU9.33 billion, missing the estimate of EU9.46 billion.
  • North America revenue was EU3.51 billion, slightly below the estimate of EU3.58 billion.
  • Western Europe revenue came in at EU2.13 billion, falling short of the EU2.27 billion estimate.
  • APAC revenue exceeded expectations at EU2.58 billion, against the estimate of EU2.46 billion.
  • Revenue from the rest of the world totaled EU1.11 billion, below the estimate of EU1.24 billion.
  • Organic revenue growth was +7.4%, below the estimate of +8.42%.
  • Energy Management achieved organic revenue growth of +9.6%, under the projected +10.4%.
  • Energy Management in North America reported +17.3% organic growth, above the expected +17.1%.
  • Western Europe’s Energy Management saw a decline of -3.2% in organic revenue, against expectations of +6.5%.
  • APAC Energy Management had a strong performance with +12.9% organic growth, exceeding the +7.17% estimate.
  • Industrial Automation’s organic revenue fell by -0.9%, missing the +1.17% estimate.
  • In Western Europe, Industrial Automation revenue declined by -4.8%, lower than the forecasted -2.4%.
  • The company maintained its adjusted EBITA margin forecast at about 18.7% to 19%, slightly down from earlier expectations of 19.2% to 19.5%.
  • Organic revenue growth guidance remains at +7% to +10% for the year, with the estimate being +8.78%.
  • Schneider Electric reaffirms its 2025 targets, expecting ongoing demand growth despite residential market challenges.
  • The company is implementing commercial and supply chain strategies to mitigate tariff impacts.

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Schneider Electric Se on Smartkarma

Analyst coverage of Schneider Electric SE on Smartkarma by Baptista Research presents a bullish sentiment in their report titled “Schneider Electric: Initiation of Coverage- Can This Digital Powerhouse Dominate the Data Center Boom?” The report highlights Schneider Electric’s impressive 2024 full-year results, showcasing the company’s adeptness in navigating market dynamics. With a recorded revenue of EUR 38 billion, reflecting an 8% organic growth exceeding expectations, Schneider Electric’s success is attributed to robust performances in Energy Management, particularly in data centers, and a significant recovery in Industrial Automation following a lackluster period.


A look at Schneider Electric Se Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience4
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Schneider Electric Se has a positive long-term outlook. With a growth score of 4 and a resilience score of 4, the company is positioned well for expansion and demonstrated stability. Additionally, the momentum score of 3 suggests a favorable trend in the company’s performance. While the value and dividend scores are slightly lower at 2, indicating room for improvement, the overall outlook for Schneider Electric Se appears promising, especially in terms of growth potential and resilience in the face of market challenges.

Schneider Electric SE, a manufacturer of power distribution and automation systems, produces a wide range of essential electrical products, including circuit breakers, industrial control products, and human-machine interfaces. Known for its high-quality offerings under various brands, Schneider Electric Se‘s emphasis on innovation and reliability has contributed to its positive outlook for growth and resilience in the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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