How are energy investors positioned?
Investing.com -- Legrand (EPA:LEGD) reported second-quarter results that exceeded analyst expectations, following a pre-release earlier this month that had already indicated strong performance.
The electrical equipment company’s second-quarter sales had been pre-released and came in 5% ahead of consensus. The latest report revealed the company achieved significant operating leverage on its volume growth, with operating profit 8% above consensus expectations. Legrand posted an operating margin of 21.7%, which was 90 basis points higher than analysts had anticipated.
Beyond the sales growth guidance that was raised with the pre-release, management has now also increased its full-year margin guidance to 20.5%-21.0%. This represents an improvement from previous guidance, which had indicated margins would hold stable overall after acquisitions, compared with 2024 levels of 20.5%. Current consensus estimates sit at the lower end of this new range at 20.5%.
Barclays (LON:BARC) noted that Legrand appears to be entering a new phase of above-typical levels of organic growth and margin. The bank attributes this to Legrand’s unique position among data center electrical equipment competitors as a specialist in white space and server room solutions.
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