Engineering and automation solutions company Emerson (NYSE:EMR) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Emerson Electric beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $4.62 billion, up 12.9% year on year. It was a mixed quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
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 grow 2.6% year on year to $4.22 billion, slowing from the 22.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 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 Q4 results, giving us a hint as to what we can expect. AMETEK delivered year-on-year revenue growth of 1.8%, missing analysts’ expectations by 3.6%, and LSI reported revenues up 35.5%, topping estimates by 14.3%. LSI traded up 11.7% following the results.
Read our full analysis of AMETEK’s results here and LSI’s results here.
Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Emerson Electric is up 4.7% during the same time and is heading into earnings with an average analyst price target of $140.15 (compared to the current share price of $127.85).
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