Emerson Electric Earnings: Here’s Why Investors are Selling Shares Now

Emerson Electric Co. (NYSE:EMR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.17%.

Emerson Electric Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $1.04 in the quarter as EPS of $1.04 in the year-earlier quarter.

Revenue: Decreased 2.16% to $6.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emerson Electric Co. reported adjusted EPS income of $1.04 per share. By that measure, the company beat the mean analyst estimate of $0.98. It missed the average revenue estimate of $6.44 billion.

Quoting Management: “As expected, demand was slow in the quarter as economies around the world struggled for growth,” said Chairman and Chief Executive Officer David N. Farr. “Low levels of business investment continue to reflect a cautious climate, particularly in mature markets. Despite some soft pockets, emerging markets were encouraging, as strategic investments generated growth. The near-term is expected to remain slow, but orders growth has resumed, suggesting the economic environment is beginning to stabilize and improve.”

Key Stats (on next page)…

Revenue increased 6.44% from $5.96 billion in the previous quarter. EPS increased 35.06% from $0.77 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.12 to a profit $1.11. For the current year, the average estimate has moved down from a profit of $3.53 to a profit of $3.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)