Emerson Electric
The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Emerson Electric met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins shrank, net margins dropped.
Revenue details
Emerson Electric booked revenue of $6.70 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $6.68 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $6.55 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.11. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.05 per share. GAAP EPS of $0.39 for Q4 were 61% lower than the prior-year quarter's $1.01 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 41.0%, 140 basis points better than the prior-year quarter. Operating margin was 18.5%, 60 basis points worse than the prior-year quarter. Net margin was 4.2%, 740 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $5.39 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $25.12 billion. The average EPS estimate is $3.66.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,379 members out of 1,405 rating the stock outperform, and 26 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 354 give Emerson Electric a green thumbs-up, and eight 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 $55.33.
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