Earnings Update: Legrand SA (EPA:LR) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's shaping up to be a tough period for Legrand SA (EPA:LR), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Legrand missed analyst forecasts, with revenues of €2.0b and statutory earnings per share (EPS) of €0.97, falling short by 2.5% and 4.5% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Legrand after the latest results.

View our latest analysis for Legrand

Following the latest results, Legrand's 17 analysts are now forecasting revenues of €9.07b in 2025. This would be a notable 8.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 16% to €4.62. In the lead-up to this report, the analysts had been modelling revenues of €9.07b and earnings per share (EPS) of €4.63 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €105, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Legrand, with the most bullish analyst valuing it at €125 and the most bearish at €82.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Legrand's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Legrand'shistorical trends, as the 7.0% annualised revenue growth to the end of 2025 is roughly in line with the 7.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.8% per year. So although Legrand is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Legrand going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Legrand you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.