By Nina Kienle

European industrial companies are expected to have closed the quarter ended December with overall solid figures once again. Analysts continue to view electrical infrastructure and data centers as a key growth drivers and competitive fields for major companies in the sector. Investors will also focus on China, where analysts now don't see the previously expected recovery. Here is what you need to know:

WHAT TO WATCH

-- Industrial companies are expected to continue to report strong performances in electrical infrastructure and data centers as development in other areas remain muted, analysts said. JP Morgan analysts expect the development of data centers to remain the clear standout for both Legrand and Schneider Electric, while Siemens has highlighted the opportunity for the sector in Asia, in addition to the U.S.

-- JPMorgan analysts don't see the hoped-for recovery in China at this point. The end of destocking for Siemens's Digital Industries business is now expected in February or March, with an improvement expected to follow in the second half of the year, "albeit one that is uncertain in terms of both pace and magnitude," they said in a note. Analysts from Jefferies wrote that conditions are no longer deteriorating as headwinds ease.

-- Expectations for ABB are high, given the strength in shares through the past year, which has continued into early 2025, Jefferies analysts noted. UBS analysts see scope for Schneider Electric's 2025 organic growth to accelerate both above consensus and the company's mid-term target. They also see a slight tweak up in guidance for Siemens's Smart Infrastructure division.

WHEN COMPANIES ARE SCHEDULED TO REPORT:

-- ABB 4Q results: Jan. 30

-- Siemens 1Q results: Feb. 13

-- Legrand FY results: Feb. 13

-- Schneider Electric FY results: Feb. 20

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

(END) Dow Jones Newswires

January 28, 2025 08:12 ET (13:12 GMT)

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