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.
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 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.
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.
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.
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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