Emerson Electric Q1 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy EMR?
Source: seekingalpha
- Earnings Highlights: Emerson Electric reported a Q1 non-GAAP EPS of $1.46, beating expectations by $0.05, indicating ongoing improvement in profitability, while revenue of $4.35 billion, up 4.1% year-over-year, aligned with market consensus.
- 2026 Outlook: The company plans to return approximately $2.2 billion to shareholders in 2026 through about $1 billion in share repurchases and $1.2 billion in dividends, signaling a strategic shift in capital allocation towards shareholder returns to bolster investor confidence.
- Sales Growth Forecast: For Q2 2026, net sales growth is projected between 3% and 4%, with underlying sales growth expected between 1% and 2%, reflecting the company's robust performance in the market and confidence in future growth.
- Cash Flow Position: Free cash flow is anticipated to range from $3.5 billion to $3.6 billion, while operating cash flow is expected between $4.0 billion and $4.1 billion, providing a strong cash position to support future investments and shareholder returns.
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Analyst Views on EMR
Wall Street analysts forecast EMR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for EMR is 150.46 USD with a low forecast of 125.00 USD and a high forecast of 170.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
7 Buy
6 Hold
1 Sell
Moderate Buy
Current: 157.380
Low
125.00
Averages
150.46
High
170.00
Current: 157.380
Low
125.00
Averages
150.46
High
170.00
About EMR
Emerson Electric Co. is a global technology and software company that provides solutions for customers in a wide range of end markets around the world. The Company operates through seven segments under two business groups, such as Intelligent Devices and Software and Control. Its Intelligent Devices business includes Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity. Software and Control business includes Control Systems & Software, Test & Measurement, and AspenTech. Its Final Control segment is a global provider of control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries. Its Measurement & Analytical segment is a supplier of intelligent instrumentation measuring the physical properties of liquids or gases. AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate and maintain their operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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