Sales beat, but margin and FCF light Legrand Q3 sales came in 2.6% ahead of Consensus, thanks to stronger organic sales growth (8.4% vs. Cons at 7.3%) and a bigger FX tailwind. North America was the standout; the US was still growing at 10.6% in Q3; Rest of the World growth was more muted, as sales declined in both China and Brazil. The Group adjusted EBIT margin came in 46bps light, impacted by raw materials and components inflation of 11%. FCF missed by 19%. Guidance unchanged; low end appears far too bearish... Guidance for FY22e was unchanged, such that it now implies a very wide range of outcomes for Q4. One could argue that this late into the year, management should have narrowed the range. During the conference call, the Company assumes a theoretical price contribution in Q4 of 10% YoY, therefore FY22e guidance implies that Q4 volumes will be down -15% at the low end of the range and -3% at the high end (midpoint -9%). Both ends of the range imply YoY volume declines that are worse than we saw in Q3. Much worse at the low end of the range - an outcome which we do not believe is a credible scenario. The CEO stated that they are shooting for the high end of the guidance in Q4. ...high end appears to imply a worse 2023 than Consensus models By our estimation, at the high end of Legrand''s FY23e guidance, a sequential stabilisation in early 2023, following on from a -3% volume decline in Q4 22 would result in a volume decline of c. -6% next year. Consensus organic sales growth for 2023 sits around c. 0%. We doubt that will be achievable if volumes continue to sequentially weaken next year. Our FY23e organic sales growth forecast (price and volume) now sits at -1.9%. Updating estimates; TP at EUR90/s We update our estimates for recent trading and latest FX. We cut our target price to EUR90/s.