Emerson Electric Co. Earnings: Streak of Four Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Emerson Electric Co. (NYSE:EMR) reported its results for the first quarter. Emerson Electric is a multinational technology company that designs and supplies product technology. It provides engineering services to a wide gamut of industrial, commercial, and consumer markets worldwide.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Emerson Electric Earnings Cheat Sheet for the First Quarter

Results: Net income for Emerson Electric Co. fell to $371 million (50 cents per share) vs. $480 million (63 cents per share) a year earlier. This is a decline of 22.7% from the year earlier quarter.

Revenue: Fell 4.1% to $5.31 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Emerson Electric Co. fell in line with the mean analyst estimate of 50 cents per share. Analysts were expecting revenue of $5.29 billion.

Quoting Management: “It was a very difficult first quarter of the new fiscal year. Given the momentum from our record performance in the fourth quarter of 2011, we expected to get the year off to a better start,” said Chairman and CEO David Farr. “Unfortunately, the headwinds were too strong and numerous to overcome. The good news is that most of these challenges are temporary, and our businesses and end markets remain fundamentally solid. We continue to believe 2012 will be a good year with record financial performance.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 1.6% from the year earlier, while the figure increased 16.8% in the third quarter of the last fiscal year, 37.3% in the second quarter of the last fiscal year and 12.9% in the first quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 24.8%.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 98 cents versus a mean estimate of net income of 97 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 87 cents per share to 85 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past sixty days, the average estimate for the fiscal year has reached $3.51 abs per share, a decline from $3.61.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

These Retailers Continue to Confuse Investors

Golden Cross Accomplished, Should You Buy?

Is 2012 the Year of the Golden Dragon?

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com