Emerson Electrifies Q2 With Earnings Beat, Tightens FY Sales Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2024
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Source: Benzinga
- Financial Performance: Emerson Electric Co reported second-quarter FY24 net sales growth of 17% Y/Y to $4.38 billion, beating consensus expectations.
- Segment Sales: Sales figures by segments include growth in Final Control and Measurement & Analytical, while Discrete Automation saw a decline.
- Profitability: Adjusted EPS improved by 25% Y/Y to $1.36, with adjusted Total Segment EBITA at $1.14 billion and an improved margin of 26.0%.
- Cash Flow: Operating cash for the quarter was $757 million, free cash flow increased by 32% Y/Y to $675 million, and the company held $2.32 billion in cash and equivalents.
- Outlook and Forecast: Emerson Electric revised its FY24 outlook with expected net sales growth of 15%-16%, underlying sales growth of 5.5%-6.5%, and adjusted EPS of $5.40-$5.50.
Analyst Views on EMR
Wall Street analysts forecast EMR stock price to rise 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: 150.260
Low
125.00
Averages
150.46
High
170.00
Current: 150.260
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.
