Legrand SA (EPA:LR) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders might have noticed that Legrand SA (EPA:LR) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.2% to €131 in the past week. It looks like the results were a bit of a negative overall. While revenues of €5.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.7% to hit €2.64 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Legrand's 17 analysts is for revenues of €11.0b in 2026. This reflects a meaningful 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.9% to €5.51. In the lead-up to this report, the analysts had been modelling revenues of €10.8b and earnings per share (EPS) of €5.55 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Legrand
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €163. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Legrand, with the most bullish analyst valuing it at €200 and the most bearish at €114 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Legrand's past performance and to peers in the same industry. It's clear from the latest estimates that Legrand's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Legrand is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Legrand analysts - going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Legrand that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.