Investing.com -- On Wednesday, Schneider Electric (EPA:SCHN) announced record third-quarter revenue of €9.3 billion, reflecting an 8% organic increase compared to the same period last year.
The company's performance was driven by strong growth across key markets, led by the Energy Management segment.
Energy Management saw a 12% organic increase, supported by robust demand in data centers and infrastructure, while Industrial Automation experienced a 6% decline due to weakness in discrete automation markets, especially in Western Europe.
Schneider noted that both North America and other global markets contributed double-digit organic growth during the quarter.
CEO Peter Herweck highlighted the company's focus on capitalizing on key trends such as digitization, artificial intelligence, and the energy transition.
"Sales in Q3 are at record levels," he said, adding that the Systems business was a standout, achieving 19% organic growth.
Herweck also noted positive developments in the Software and Services division, with recurring revenue from AVEVA's annual recurring revenue (ARR) increasing by 15%.
Schneider Electric recently completed the acquisition of Motivair Corporation, which strengthens its position in data center cooling solutions.
The company also reaffirmed its full-year 2024 targets, expecting adjusted EBITA growth between 9% and 13% organically and revenue growth of 6% to 8%.
Reacting to the report, analysts at UBS maintained a Buy rating on the stock, saying the company "has delivered a very solid Q3 2024 sales print."
"We view the announced €207m fine in France from the 2018 anti-trust investigation as small on Schneider scale (€139bn market cap) and view removal of overhang as slightly positive, added the bank. "Overall, we see this as a very solid print and continue to view the implied H2 guidance, especially for profitability in the light of peers' reporting, as conservative."