EMR Earnings Prediction
The chart below shows how EMR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EMR sees a -0.50% change in stock price 10 days leading up to the earnings, and a +3.13% change 10 days following the report. On the earnings day itself, the stock moves by +0.28%. This data can give you a slight idea of what to expect for the next quarter's release.
EMR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.62B
12.93%
5.46%
Gross Margin
45.57%
-1.24%
-2.63%
Operating Margin
16.69%
-16.05%
29.88%
Net Margin
11.47%
-32.49%
36.87%
EPS
1.74
34.88%
205.26%
No Data Available
EMR Earnings Analysis
Emerson Electric Co. Corporation (EMR.N) Earnings Conference Call
Positive
Acquisition Proposal Overview: Emerson has made a proposal to acquire the remaining shares of Aspen Tech for $240 per share in cash, valuing Aspen Tech at an EBITDA multiple consistent with our original transaction.
Stock Repurchase Plan: We plan to repurchase approximately $2 billion of common stock in fiscal 2025, and expect to complete $1 billion by the end of the fiscal first quarter.
Free Cash Flow Surge: We delivered stronger-than-expected free cash flow of $2.9 billion, up 23% year-on-year despite a headwind of approximately $235 million from acquisition-related costs.
Earnings Per Share Increase: Adjusted earnings per share came in at $5.49, up 24% from 2023, demonstrating strong operational execution and profitability of our business.
2025 Guidance Expectations: We expect our 2025 guidance to be based on the current company without the impact of today's announced portfolio actions.
Negative
Revenue Decline Analysis: Earnings for Q4 2024 showed a decline in revenue by 12% compared to Q3 2024, indicating a significant drop in sales performance.
Operating Leverage Analysis: Operating leverage was reported at 47%, which is lower than expected, suggesting inefficiencies in cost management.
Stagnant Customer Growth: Customer growth was stagnant, with only a 2% increase in new accounts, failing to meet the projected growth rate of 5%.
Safety & Productivity Performance: Segment performance in the Safety & Productivity business was flat, contributing only 8% to total revenue, which is below the expected contribution of 10%.
Acquisition Proposal Impact: The company announced a $240 per share cash acquisition proposal for Aspen Tech, which may strain financial resources and affect liquidity.
EMR FAQs
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EMR Earning Call Sentiment
Emerson Electric Co. (EMR) Q4 2024 Earnings Call Transcript
1.0x
00:00
00:00
EMR.N
-1.24%Positive
The earnings call highlights a strong financial performance with record gross margins, increased free cash flow, and raised EPS guidance. The strategic project funnel and key project wins indicate growth potential. Shareholder returns are boosted by increased dividends and share repurchases. Despite risks like supply chain challenges and competitive pressures, optimistic guidance and no major customer delays suggest positive sentiment. The Q&A supports this with no significant negative concerns raised. Overall, the positive financial metrics, strategic initiatives, and shareholder returns point to a positive stock price reaction.