Emerson Electric Beats on Revenue, Matches Expectations on EPS

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 5, 2013 at 12:00AM
Other

Emerson Electric (NYSE: EMR) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Emerson Electric beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Gross margins grew, operating margins contracted, net margins grew.

Revenue details
Emerson Electric logged revenue of $5.55 billion. The 17 analysts polled by S&P Capital IQ wanted to see revenue of $5.43 billion on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $5.31 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 $0.62. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.62 for Q1 were 24% higher than the prior-year quarter's $0.50 per share.

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 39.7%, 100 basis points better than the prior-year quarter. Operating margin was 13.1%, 10 basis points worse than the prior-year quarter. Net margin was 8.2%, 120 basis points better than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $6.02 billion. On the bottom line, the average EPS estimate is $0.81.

Next year's average estimate for revenue is $25.06 billion. The average EPS estimate is $3.60.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,382 members out of 1,408 rating the stock outperform, and 26 members rating it underperform. Among 405 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 400 give Emerson Electric a green thumbs-up, and five 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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