Emerson Electric First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Emerson Electric (NYSE:EMR) will unveil its latest earnings on Tuesday, February 5, 2013. 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 62 cents per share, a rise of 24% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 65 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 63 cents during the last month. Analysts are projecting profit to rise by 6.2% versus last year to $3.60.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of $1.11 per share, and the previous quarter, it had profit of $1.04.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 62.9% to $282 million (39 cents a share) from $761 million ($1.01 a share) the year earlier, but exceeded analyst expectations. Revenue rose 2.4% to $6.7 billion from $6.54 billion.

Stock Price Performance: Between November 30, 2012 and January 30, 2013, the stock price had risen $6.98 (13.9%), from $50.23 to $57.21. The stock price saw one of its best stretches over the last year between December 3, 2012 and December 20, 2012, when shares rose for 14 straight days, increasing 7.4% (+$3.65) over that span. It saw one of its worst periods between August 24, 2012 and September 5, 2012 when shares fell for eight straight days, dropping 5.3% (-$2.72) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.3% in revenue from the year-earlier quarter to $5.43 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 1.1% in the second quarter of the last fiscal year and 3.1% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 18.7% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with 13 of 19 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.42 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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