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Schneider Electric Share Price Gains on Higher 2020 Revenue Forecast

Nigel Firth
Nigel Frith trader
Updated 22 Mar 2021

Practice Stock Trading
schneider electric building logo

Shares of Schneider Electric (EPA: SU) soared about 3.5% on Thursday after the French electrical giant upgraded the full-year forecast.

Schneider Electric said it now expects its revenue to fall between 5% and 7% for the full-year. This is better compared with a tumble of 7% – 10% it projected in July.

“The crisis has reinforced our customer’s agenda for sustainability and digitisation, both areas where Schneider has focused its strategy,” Chief Executive Officer Jean-Pascal Tricoire said in a statement.

The upgraded forecast came after the company posted third-quarter revenue of 6.46 billion euros ($7.65 billion), beating the market expectations of 6.03 billion euros. The reported figure is also 1.3% higher year-on-year.

The company witnessed a surge in demand in its residential business, as well as accelerating activities in industrial and commercial buildings.

As a result, Schneider also increased its full-year core profit margin target to above 15% (15.1% – 15.4%), from prior 14.5% – 15.0% previously. The electrical giant aims to hit a 17% profit margin by 2022.

Schneider Electric share price jumped on better-than-expected 3Q revenue October 2020

Schneider Electric share price rose around 3.5% to €109.80 and therefore turning positive on the week.


Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.