Schneider Electric S.E. (EPA:SU) Just Released Its Half-Yearly Earnings: Here's What Analysts Think
Investors in Schneider Electric S.E. (EPA:SU) had a good week, as its shares rose 8.0% to close at €290 following the release of its interim results. It was a workmanlike result, with revenues of €21b coming in 2.7% ahead of expectations, and statutory earnings per share of €7.41, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 22 analysts covering Schneider Electric are now predicting revenues of €44.4b in 2026. If met, this would reflect a credible 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 12% to €9.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of €43.6b and earnings per share (EPS) of €9.29 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 Schneider Electric
There were no changes to revenue or earnings estimates or the price target of €319, suggesting that the company has met expectations in its recent result. 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. The most optimistic Schneider Electric analyst has a price target of €365 per share, while the most pessimistic values it at €262. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Schneider Electric's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Schneider Electric to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Schneider Electric. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Schneider Electric going out to 2028, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.