From Investing.com: 2024-05-03 19:58:13

Legrand (LR.PA) reports a sales decrease for Q1 2024 due to a slowdown in the building sector. The company maintains good margin resilience and confirms full-year targets, including an adjusted operating margin between 20% and 20.8%. Legrand announces an increase in dividends and remains optimistic about its data center business and acquisition strategy.

Key Takeaways:
– Sales fell by 3.7% excluding exchange rates and Russia, with an organic decline of 5.4%.
– Full-year sales growth target of low-single digits and an adjusted operating margin of 20% to 20.8% is confirmed.
– Legrand focuses on acquisitions in data centers, assisted living, and connected solutions.
– Commitment to reducing GHG emissions by 90% by 2050 validated.

Company Outlook:
– Expecting a rebound in housing starts and investments in 2024.
– Continuing to invest in growth through R&D and new product launches.
– Acquisitions aimed to be value accretive within five years.
– Data centers performing well, with strong growth expected.

InvestingPro Insights:
– Legrand has a market capitalization of $26.83 billion USD and a P/E ratio of 22.1.
– Gross profit margins at 52.26% indicate strong cost control.
– Legrand has a history of maintaining dividends for 19 consecutive years.
– Operational strengths evident in gross profit and operating income margin.

Q1 financial performance review indicates a decline in sales volume affecting EBIT margin. The company’s strategic acquisitions and focus on growth sectors like data centers position it well for future market improvements. Legrand demonstrates reliable financial management and commitment to innovation and sustainability. Investors note the company’s strong gross profit margins and dividend history.

To join the conversation on Legrand’s financial health and stock performance, visit InvestingPro for more insights. Use coupon code PRONEWS24 for an extra 10% off on a yearly or biyearly Pro and Pro+ subscription. For the full conference call transcript, visit Legrand’s website.



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