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Investing.com -- Schneider Electric reported higher third-quarter revenue as its industrial automation business returned to growth, though results came in just shy of expectations.
Revenue rose 9% organically to 9.72 billion euros ($11.28 billion) in the three months to September, compared with a company-compiled consensus of 9.78 billion euros.
The energy management division grew 9.7% to 8.04 billion euros, supported by strong data center demand, while industrial automation revenue rose 6% to 1.69 billion euros.
RBC Capital Markets analysts said the results were broadly in line, with a “solid Industrial Automation beat led by recovery in Discrete,” adding that residential markets also showed early signs of improvement.
"Overall about in line numbers, but the key positive takeaway is the positive noise around recently softer end markets," analysts led by Mark Fielding wrote.
"We see the Energy Management business as more resilient to cyclical risks and its growth profile remaining above peers," they added.
Regionally, all markets contributed to growth, with North America up 14.5% organically and Asia Pacific 6.4%.
Schneider Electric reaffirmed its full-year outlook, maintaining guidance for 7%–10% organic revenue growth and 10%–15% organic adjusted EBITA growth, with margin improvement of 0.5 to 0.8 percentage points.
The company now expects a larger FX headwind of €1.4–1.5 billion on sales and a 50-basis-point drag on margins.
Schneider Electric will host its capital markets day on December 11.