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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Emerson Electric Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.