Schneider Electric Earnings: Record Revenue and Upgraded EBITA Guidance Showcase Its Secular Growth

Wide-moat Schneider Electric’s exceptional second-quarter results continue to showcase its role in enabling several secular growth themes. Second-quarter organic revenue growth of 7% saw Schneider beat FactSet consensus. Meanwhile, it also upgraded its full-year organic EBITA growth guidance by 1% to between 9% and 13%. Shares are trading 3% higher intraday following the quarterly beat and raise. Our estimates had already incorporated organic EBITA growth to fall within its upgraded range and thus we don’t expect to make material changes to our forecasts. We’re maintaining our EUR 208 fair value estimate and view shares as fairly valued at current levels.