Schneider Electric Earnings: Guidance Tops Peer Group, Reflecting Attractive End-Market Outlook

Wide-moat Schneider Electric outperformed expectations during fiscal 2023 and guided for growth ahead of peers in fiscal 2024, justifying why it is trading at a premium multiple relative to its peers. Organic revenue grew 12.7% during the full year, the upper end of its upgraded guidance and beating company-compiled consensus of 12.2%. Guidance for fiscal 2024 organic revenue growth between 6% and 8% and operating profit growth between 8% and 12% exceeds its capital goods peers, reflecting the attractive outlook for several of Schneider’s end markets. Shares are trading at a slight premium to our EUR 174 fair value estimate.