Engineering and automation solutions company Emerson (NYSE: EMR) will be reporting results tomorrow before the bell. Here’s what you need to know.
Emerson Electric missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $4.18 billion, up 1.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
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 be flat year on year at $4.38 billion, slowing from the 16.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Emerson Electric’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vontier’s revenues decreased 1.9% year on year, beating analysts’ expectations by 2.8%, and AMETEK reported flat revenue, falling short of estimates by 0.7%. Vontier traded up 4.7% following the results while AMETEK’s stock price was unchanged.
Read our full analysis of Vontier’s results here and AMETEK’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 12.3% on average over the last month. Emerson Electric is up 11.8% during the same time and is heading into earnings with an average analyst price target of $131.32 (compared to the current share price of $108.38).
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