Emerson Electric Prepares for Q4 Earnings Announcement: Analysts Expect Strong Results
Emerson Electric Co. (EMR), based in St. Louis, Missouri, stands as a leader in technology and engineering, offering innovative products for industrial, commercial, and residential sectors. With a market cap of $63.2 billion, the company is recognized for its advanced automation technologies and services that cater to a global clientele. Upcoming Q4 earnings will be revealed before the market opens on Tuesday, Nov. 5.
Analysts Anticipate Earnings Growth
As the earnings report date closes in, analysts project that EMR will announce a profit of $1.47 per share. This marks a 14% increase from $1.29 in the same quarter last year. Over the last four quarters, the company has often surpassed Wall Street’s earnings expectations, achieving a “beat” in three instances and falling short once.
The last quarter saw Emerson deliver adjusted earnings of $1.43 per share, slightly higher than the consensus estimate. This performance helped EMR achieve its earnings boost for Q3.
Looking ahead to fiscal 2024, analysts predict that EMR will post earnings per share (EPS) of $5.48, reflecting a growth of 23.4% from $4.44 in fiscal 2023.
EMR Performance in Context
The stock performance of EMR has been modest, with shares up only 13.5% year-to-date. This is notably lower than the S&P 500 Index’s ($SPX) impressive 23% gain, as well as the Industrial Select Sector SPDR Fund’s (XLI) 22.2% increase during the same period.
Recent Challenges and Analyst Outlook
On August 7, Emerson Electric experienced a drop of over 7% in its shares following the release of its Q3 earnings results. Revenue totaled $4.38 billion, falling short of analysts’ expectations. The setback was further compounded by a decline in discrete automation orders, which fell slightly on both a year-over-year and sequential basis.
The company’s cash reserves have also seen a significant decrease, dropping to $2.3 billion from $8.1 billion in the previous year. This reduction was the result of strategic investments and acquisitions.
Despite these challenges, the overall sentiment surrounding EMR stock leans toward a moderate optimism, reflected in its “Moderate Buy” rating. Out of 20 analysts tracking the stock, 14 recommend a “Strong Buy,” one favors a “Moderate Buy,” four suggest a “Hold,” and one advises a “Moderate Sell.”
Analysts have set an average price target of $126.75 for EMR, indicating a potential upside of 14.8% from current stock levels.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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