SU Schneider Electric SE

   By Nathan Allen 
 

Shares in Schneider Electric SE (SU.FR) rose more than 5% Thursday morning after the French group raised its 2018 guidance and reported better-than-expected third-quarter revenue.

Revenue rose to 6.38 billion euros ($7.29 billion) from EUR5.90 billion a year earlier, the company said, comfortably beating a FactSet-compiled consensus of EUR6.31 billion.

Based on the results, Schneider raised its target for 2018 organic sales growth to 6% from a previous estimate of between 5% and 6%. It also said it now expects organic growth in adjust earnings before interest, taxes, depreciation and amortization of between 8% and 9%, compared with an earlier forecast of between 7% and 8%.

The company may accelerate a previously announced EUR1 billion buyback program to end in 2018, rather than previous guidance for 2019.

At 0810 GMT the company was trading 5.4% higher at EUR60.86.

All of Schneider's business units and regions contributed to the higher growth. The company reported organic growth of 11% in Asia Pacific and 9% in North America.

Jefferies analyst Peter Reilly said the biggest surprise was the solid growth at Schneider's medium-voltage and secure-power businesses, which are generally the lowest-performing units.

The results are likely to prompt upgrades to consensus estimates and improve sentiment on the stock, which has come under pressure recently, according to UBS's Markus Mittermaier.

However, the slowing outlook for Asia Pacific growth raises some concerns for the future, Mr. Mittermaier said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

October 25, 2018 04:36 ET (08:36 GMT)

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