By Nina Kienle

French digital energy-management and automation company Schneider Electric is scheduled to report first-quarter revenue figures on Monday. Here is what you need to know:

SALES FORECAST: Schneider Electric is expected to report 9.47 billion euros ($10.71 billion) in sales for the first quarter, according to consensus estimates provided by the company. This would be an increase from the 8.61 billion euros it reported in the prior year.

Shares trade down 0.1% at 208.80 euros and 13% lower year-to-date.

WHAT TO WATCH:

-- DATA CENTERS: Growth in the data center and artificial intelligence segments remain robust despite a shift in market sentiment, HSBC and UBS analysts said. Citi analysts see the company's backlog as well covered in 2025. In addition, the broader trends of electrification and digitalization are intact and continue to support Schneider's organic revenue growth guidance and organic adjusted Ebita margin expansion with the guidance ranges encompassing different scenarios including the impact of tariffs, HSBC analysts said.

-- OUTLOOK: Schneider Electric is expected to face a limited direct risk from U.S. tariffs and positive organic sales growth in 2025-26 even in a mild recession scenario, Citi analysts said in a note to clients. HSBC analysts see the company achieving its 7% to 10% growth guidance in 2025 driven by healthy end-markets, they said. UBS analysts added that the broad messaging looks to be unchanged with no cancellations or slowdown observed.

-- VALUATION: Schneider's share-price decline has meant its valuation premium to peers Legrand and ABB has now dissipated, with Citi analysts seeing the valuation attractive in a sector context for the first time in close to three years, they said.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

April 24, 2025 08:44 ET (12:44 GMT)

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