Schneider Electric, the French energy-management and automation group, experienced a decline in sales following the release of its third-quarter revenue, which showed little change compared to the previous year and fell short of expectations.
At 0728 GMT, Schneider Electric’s shares were down 2.5% at EUR136.48, having previously dropped as much as 4%.
For the quarter, the company reported revenue of 8.79 billion euros ($9.29 billion), representing a marginal 0.1% increase compared to the same period last year. Analysts had predicted revenue to reach EUR8.93 billion, based on a company-provided consensus.
Although Schneider Electric maintained its 2023 outlook, Berenberg analyst Philip Buller noted that this could result in varying outcomes for the fourth quarter.
The company’s upcoming capital markets day, scheduled for next month, is expected to be a significant event for potential buyers, according to Buller.
Citi analyst Martin Wilkie, in a research note, stated that the sales figures would likely have limited impact on the year’s consensus. However, he cautioned that a shift in the sales mix towards systems, as well as concerns over margins in the second half of the year and sustainability in 2024, could raise questions.