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Emerson (EMR) to Report Q2 Earnings: Beat in the Cards?
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Emerson Electric Co. (EMR - Free Report) is set to release second-quarter fiscal 2021 (ended March 2021) results on May 5, before market open.
Notably, the company’s earnings beat estimates in each of the last four quarters, the surprise being 21.53%, on average. In the last reported quarter, Emerson’s earnings of 83 cents per share beat the Zacks Consensus Estimate of 68 cents by 22.06%.
In the past three months, the company’s shares have gained 7.5% compared with the industry’s rise of 1.6%.
Factors at Play
Strength across Emerson’s medical, life science, semiconductor, food and beverage, cold chain and residential end markets is likely to have driven its top-line performance in second-quarter fiscal 2021. Also, robust backlog level at the company’s Automation Solutions segment, which was $5.3 billion exiting the first quarter of fiscal 2021 (ended December 2020), is likely to have been beneficial in the to-be-reported quarter.
Moreover, Emerson’s acquired assets are likely to have augmented its fiscal second-quarter top-line performance. Notably, the company’s acquisitions of 7AC Technologies (November 2020), Open Systems International and Progea Group (both in October 2020) and American Governor Company (April 2020) have strengthened its product offerings, which is likely to get reflected in the upcoming results.
In addition, the company’s focus on operational efficacy and cost-management initiatives might have supported its margins and profitability in the to-be-reported quarter.
However, challenged demand environment in the key automation end markets, particularly in North America, is likely to have affected its top line in the fiscal second quarter. For the quarter, the company anticipates overall organic sales to remain flat year over year.
The Zacks Consensus Estimate for Automation Solutions’ revenues for the fiscal second quarter is currently pegged at $2,729 million, indicating 1.4% growth from the quarter-ago reported number, and a year-over-year rise of 0.7%. The consensus estimate for revenues from the Commercial and Residential Solutions segment is pegged at $1,659 million, indicating a sequential increase of 12.4% and year-over-year growth of 13.8%.
The consensus estimate for the company’s fiscal second quarter total revenues is currently pegged at $4,358 million, suggesting 4.7% increase from the year-ago quarter’s reported number. The consensus estimate for earnings of 90 cents suggests an improvement of 1.1% on a year-over-year basis.
Earnings Whispers
Our proven model predicts an earnings beat for Emerson this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This is the case here as given below:
Earnings ESP: The company has an Earnings ESP of +3.62% as the Most Accurate Estimate is pegged at 93 cents, higher than the Zacks Consensus Estimate of 90 cents.
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to deliver an earnings beat this season:
SPX FLOW, Inc. (FLOW - Free Report) has an Earnings ESP of +10.61% and a Zacks Rank #3, currently.
Eaton Corporation, plc (ETN - Free Report) has an Earnings ESP of +1.96% and is presently Zacks #3 Ranked.
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Emerson (EMR) to Report Q2 Earnings: Beat in the Cards?
Emerson Electric Co. (EMR - Free Report) is set to release second-quarter fiscal 2021 (ended March 2021) results on May 5, before market open.
Notably, the company’s earnings beat estimates in each of the last four quarters, the surprise being 21.53%, on average. In the last reported quarter, Emerson’s earnings of 83 cents per share beat the Zacks Consensus Estimate of 68 cents by 22.06%.
In the past three months, the company’s shares have gained 7.5% compared with the industry’s rise of 1.6%.
Factors at Play
Strength across Emerson’s medical, life science, semiconductor, food and beverage, cold chain and residential end markets is likely to have driven its top-line performance in second-quarter fiscal 2021. Also, robust backlog level at the company’s Automation Solutions segment, which was $5.3 billion exiting the first quarter of fiscal 2021 (ended December 2020), is likely to have been beneficial in the to-be-reported quarter.
Moreover, Emerson’s acquired assets are likely to have augmented its fiscal second-quarter top-line performance. Notably, the company’s acquisitions of 7AC Technologies (November 2020), Open Systems International and Progea Group (both in October 2020) and American Governor Company (April 2020) have strengthened its product offerings, which is likely to get reflected in the upcoming results.
In addition, the company’s focus on operational efficacy and cost-management initiatives might have supported its margins and profitability in the to-be-reported quarter.
However, challenged demand environment in the key automation end markets, particularly in North America, is likely to have affected its top line in the fiscal second quarter. For the quarter, the company anticipates overall organic sales to remain flat year over year.
The Zacks Consensus Estimate for Automation Solutions’ revenues for the fiscal second quarter is currently pegged at $2,729 million, indicating 1.4% growth from the quarter-ago reported number, and a year-over-year rise of 0.7%. The consensus estimate for revenues from the Commercial and Residential Solutions segment is pegged at $1,659 million, indicating a sequential increase of 12.4% and year-over-year growth of 13.8%.
The consensus estimate for the company’s fiscal second quarter total revenues is currently pegged at $4,358 million, suggesting 4.7% increase from the year-ago quarter’s reported number. The consensus estimate for earnings of 90 cents suggests an improvement of 1.1% on a year-over-year basis.
Earnings Whispers
Our proven model predicts an earnings beat for Emerson this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This is the case here as given below:
Earnings ESP: The company has an Earnings ESP of +3.62% as the Most Accurate Estimate is pegged at 93 cents, higher than the Zacks Consensus Estimate of 90 cents.
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote
Zacks Rank: Emerson carries a Zacks Rank #3.
Other Key Picks
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to deliver an earnings beat this season:
Alarm.com Holdings, Inc. (ALRM - Free Report) has an Earnings ESP of +3.63% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SPX FLOW, Inc. (FLOW - Free Report) has an Earnings ESP of +10.61% and a Zacks Rank #3, currently.
Eaton Corporation, plc (ETN - Free Report) has an Earnings ESP of +1.96% and is presently Zacks #3 Ranked.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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