French Stocks Rise Amid Earnings Reports, Geopolitical Concerns

French stocks have rallied as quarterly earnings updates showed positive growth. Schneider Electric's earnings rise significantly, while Airbus SE reports solid net income, though concerns over tariffs linger in the background.

Date: 20-02-2025

AI Rating: 7

French stocks are experiencing a rebound as highlighted in the report. Specifically, significant movements in stock prices are linked to quarterly earnings updates and broader geopolitical concerns.

Earnings Per Share (EPS): Schneider Electric has reported an adjusted EPS of 8.32 euros, which is an improvement from 7.26 euros. This is a positive indicator for investors as it shows the company's effective growth. Furthermore, Airbus SE reported an EPS of 3.07 euros, up from 1.85 euros, reflecting strong financial performance despite its stock decline.

Net Income: Schneider Electric's fiscal 2024 net income was reported at 4.3 billion euros, up 7% year-on-year. Airbus's net income is also noteworthy, climbing 66% to 2.42 million euros from 1.46 billion euros, a significant boost for the aerospace company.

Revenue Growth: Schneider Electric's revenues grew 8% organically to 38 billion euros, with fourth-quarter revenues increasing by 12% to 11 billion euros. This growth in revenues strengthens the outlook for the company and may lead to increased investor confidence. Airbus also projects an adjusted EBIT of around 7.0 billion euros for fiscal 2025, reflecting growth from 5.35 billion euros in fiscal 2024.

On the other hand, Carrefour's caution on consumer demand and its expectation of only slight growth in free cash flow and earnings before interest and tax for 2025 presents a slightly negative picture, leading to a 7% decline in its shares.

Overall, while some companies show significant positive growth through earnings and net income, others like Carrefour present risks that may dampen investor sentiment.

Stocks: SCHN AIR RENA ACR BNP KER