The 10-second takeaway
For the quarter ended March 31 (Q2), Emerson Electric met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased.
Gross margins increased, operating margins shrank, and net margins shrank.
Emerson Electric reported revenue of $5.92 billion. The 17 analysts polled by S&P Capital IQ expected a top line of $6.01 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $5.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.80 per share. GAAP EPS of $0.74 for Q2 were 1.4% higher than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.5%, 10 basis points better than the prior-year quarter. Operating margin was 14.7%, 220 basis points worse than the prior-year quarter. Net margin was 9.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.69 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $25.04 billion. The average EPS estimate is $3.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,358 members out of 1,385 rating the stock outperform, and 27 members rating it underperform. Among 339 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 332 give Emerson Electric a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emerson Electric is outperform, with an average price target of $57.75.
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