The 10-second takeaway
For the quarter ended March 31 (Q2), Emerson Electric met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew.
Gross margins grew, operating margins dropped, net margins grew.
Emerson Electric reported revenue of $5.96 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $6.03 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.77. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $0.77 for Q2 were 4.1% higher than the prior-year quarter's $0.74 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 39.8%, 30 basis points better than the prior-year quarter. Operating margin was 14.9%, 20 basis points worse than the prior-year quarter. Net margin was 9.4%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.66 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $25.18 billion. The average EPS estimate is $3.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,384 members out of 1,411 rating the stock outperform, and 27 members rating it underperform. Among 374 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 368 give Emerson Electric a green thumbs-up, and six 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 $61.35.
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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.