Engineering and automation solutions company Emerson (NYSE: EMR) will be announcing earnings results tomorrow morning. Here’s what to expect.
Emerson Electric missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $4.38 billion, up 11% year on year. It was a disappointing quarter for the company, with a miss of analysts’ earnings estimates.
Is Emerson Electric a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Emerson Electric’s revenue to grow 11.6% year on year to $4.56 billion, improving from the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.47 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Emerson Electric has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Emerson Electric’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vontier’s revenues decreased 2% year on year, beating analysts’ expectations by 2.8%, and AMETEK reported revenues up 5.3%, in line with consensus estimates. Vontier traded up 8.5% following the results while AMETEK was also up 5.6%.
Read our full analysis of Vontier’s results here and AMETEK’s results here.
Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Emerson Electric is down 3.6% during the same time and is heading into earnings with an average analyst price target of $126.26 (compared to the current share price of $108.26).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
