Emerson Electric Co. Earnings: Two Straight Quarters of Falling Profit
S&P 500 (NYSE:SPY) component Emerson Electric Co. (NYSE:EMR) reported its results for the second 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.
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Emerson Electric Earnings Cheat Sheet for the Second Quarter
Results: Net income for the machinery-electrical fell to $545 million (74 cents per share) vs. $556 million (73 cents per share) a year earlier. This is a decline of 2% from the year-earlier quarter.
Revenue: Rose 1.1% to $5.92 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Emerson Electric Co. fell short of the mean analyst estimate of 81 cents per share. Analysts were expecting revenue of $6 billion.
Quoting Management: “Operations recovered very well from an exceedingly difficult first quarter. The sequential profitability improvement demonstrated our ability to move beyond the challenges we faced last quarter,” said Chairman and Chief Executive Officer David N. Farr.
The company’s net income has fallen for two quarters in a row. In the first quarter, net income fell 22.7% from the year-earlier quarter.
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 50 cents.
Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 4.1% to $5.31 billion in the first quarter from the year earlier.
Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the third quarter has reached $1.05 per share, up from $1.04. At $3.49 per share, the average estimate for the fiscal year has fallen from $3.51 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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