Legrand SA

LR: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€15.00	Ngcxtw	Jfgqrvzl

Legrand Earnings: Revenue Tops Expectations, but Guidance Unchanged; Raising our Fair Value Estimate

Matthew Donen

Jul 31, 2024

Narrow-moat Legrand reported a strong rebound in second-quarter performance with revenue comfortably beating FactSet consensus, sending shares 6% higher intraday. Organic revenue growth of 1.5% during the second quarter shows a remarkable improvement from the 5.4% decline in the first quarter of the year. Management kept its full-year guidance unchanged. We’re lifting our fiscal 2024 adjusted operating margin to the upper end of management’s 20.0%-20.8% guidance. Subsequently, we're raising our fair value estimate marginally to EUR 91 from EUR 87. Shares currently screen as fairly valued.

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