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The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has been revised upward by a penny in the past 60 days. EMR has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one.
Let’s see how things have shaped up for Emerson’s fiscal second quarter.
Emerson’s fiscal second-quarter performance is expected to have been aided by healthy demand across most end markets and higher volumes and pricing.
The AspenTech acquisition and strength in the process end markets are likely to have driven the Software and Control business group’s performance. We expect the segment’s revenues to increase 28% year over year.
For the fiscal second quarter of 2023, Emerson anticipates net sales growth of 10.5-12.5%. Underlying sales growth is expected to be 8-10%. We expect the company’s sales to increase 10.5% year over year in the fiscal second quarter.
However, supply chain constraints are likely to have impacted revenues at the Intelligent Devices business unit. Softness within the Safety & Productivity sub-segment due to weakness in end markets in the Americas region also might have affected revenues at the Intelligent Devices unit.
Given EMR’s substantial international operations, foreign currency headwinds are expected to have hurt the company’s top line.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Emerson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below.
Earnings ESP: Emerson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Emerson currently carries a Zacks Rank #3.
Highlights of Q1 Earnings
Emerson reported first-quarter fiscal 2023 adjusted earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 88 cents. The bottom line declined in double digits year over year. Net sales of $3,373 million missed the Zacks Consensus Estimate of $3,467 million. However, the top line increased 7% year over year on a 6% increase in underlying sales.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The company pulled off a trailing four-quarter earnings surprise of 0.9%, on average.
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Will Supply-Chain Woes Mar Emerson's (EMR) Q2 Earnings?
Emerson Electric Co. (EMR - Free Report) is scheduled to release second-quarter fiscal 2023 (ended Mar 31, 2023) results on May 3.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has been revised upward by a penny in the past 60 days. EMR has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one.
Let’s see how things have shaped up for Emerson’s fiscal second quarter.
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote
Factors to Note
Emerson’s fiscal second-quarter performance is expected to have been aided by healthy demand across most end markets and higher volumes and pricing.
The AspenTech acquisition and strength in the process end markets are likely to have driven the Software and Control business group’s performance. We expect the segment’s revenues to increase 28% year over year.
For the fiscal second quarter of 2023, Emerson anticipates net sales growth of 10.5-12.5%. Underlying sales growth is expected to be 8-10%. We expect the company’s sales to increase 10.5% year over year in the fiscal second quarter.
However, supply chain constraints are likely to have impacted revenues at the Intelligent Devices business unit. Softness within the Safety & Productivity sub-segment due to weakness in end markets in the Americas region also might have affected revenues at the Intelligent Devices unit.
Given EMR’s substantial international operations, foreign currency headwinds are expected to have hurt the company’s top line.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Emerson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below.
Earnings ESP: Emerson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Emerson currently carries a Zacks Rank #3.
Highlights of Q1 Earnings
Emerson reported first-quarter fiscal 2023 adjusted earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 88 cents. The bottom line declined in double digits year over year. Net sales of $3,373 million missed the Zacks Consensus Estimate of $3,467 million. However, the top line increased 7% year over year on a 6% increase in underlying sales.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +10.19% and a Zacks Rank #3. The company is scheduled to release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The company pulled off a trailing four-quarter earnings surprise of 0.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.