Emerson Electric Co. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Emerson Electric Co. (NYSE:EMR) will unveil its latest earnings on Tuesday, May 1, 2012. 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.

Emerson Electric Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 81 cents per share, a rise of 11% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 85 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 81 cents during the last month. Analysts are projecting profit to rise by 7.7% compared to last year’s $3.49.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the fourth quarter of the last fiscal year, the company fell in line with expectations by reporting profit of 50 cents per share last quarter.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 2.6% in revenue from the year-earlier quarter to $6 billion.

Analyst Ratings: Analysts seem relatively indifferent about Emerson Electric with nine of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, profit fell 22.7% to $371 million (50 cents a share) from $480 million (63 cents a share) the year earlier, meeting analyst expectations. Revenue fell 4.1% to $5.31 billion from $5.54 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 13.8% in the second quarter of the last fiscal year, 11.5% in the third quarter of the last fiscal year and 24.8%in the fourth quarter of the last fiscal year before dropping in the first quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 37.3% in the second quarter of the last fiscal year, 16.8% in the third quarter of the last fiscal year and 1.6% in the fourth quarter of the last fiscal year before declining in the first quarter.

Stock Price Performance: Between April 19, 2012 and April 25, 2012, the stock price rose $1.17 (2.3%), from $50.08 to $51.25. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011, when shares rose for nine straight days, increasing 8.5% (+$4.47) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight straight days, dropping 5.7% (-$3.21) over that span.

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

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