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The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings has remained steady 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, the average beat being 4.5%.
Let’s see how things have shaped up for Emerson in the fiscal third quarter.
Factors to Note
Strong demand in the process and hybrid markets and improving supply chains are likely to have driven Emerson’s fiscal third-quarter performance.
Underlying sales growth in the Americas region is expected to have boosted the performance of the Intelligent Devices unit. We expect the segment’s revenues to increase 10.4% from the third-quarter fiscal 2022 reported number.
The AspenTech acquisition and strength in the process end market are likely to have driven the revenues of the Software and Control segment. For the fiscal third quarter, we expect the segment’s revenues to increase 14% from the year ago-reported number.
The acquisition of Fluxa (July 2022), which has enabled Emerson to leverage the former’s PKM software, its DeltaV control system and life sciences automation software to provide customers with a comprehensive line of solutions for developing new drugs, is likely to have aided the company’s top line in the third quarter of fiscal 2023. We expect fiscal third-quarter revenues to climb 11.5% from the year-ago period. For the to-be-reported fiscal quarter, we anticipate adjusted earnings to increase 17.3% from the year-ago reported number.
However, the increasing cost of sales is likely to have impacted EMR’s margin performance in the fiscal third quarter. Given the company’s substantial international operations, foreign currency headwinds are expected to have dampened the company’s top-line growth.
Our proven model suggests an earnings beat for EMR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: EMR has an Earnings ESP of +2.35% as the Most Accurate Estimate is pegged at $1.12, higher than the Zacks Consensus Estimate of $1.09. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR carries a Zacks Rank of 2.
Highlights of Q2 Earnings
Emerson reported second-quarter fiscal 2023 (ended Mar 31, 2023) adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of adjusted earnings of 97 cents per share. The bottom line declined 15.5% in the reported quarter. Emerson’s net sales of $3,756 million beat the consensus estimate of $3,650 million. The top line increased 14% year over year.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
The company is scheduled to release second-quarter results on Jul 27. AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching in one, the average beat being 8%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3. The company is slated to release second-quarter 2023 results on Aug 2.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.6%.
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What's in the Cards for Emerson (EMR) This Earnings Season?
Emerson Electric Co. (EMR - Free Report) is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2, before the market open.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings has remained steady 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, the average beat being 4.5%.
Let’s see how things have shaped up for Emerson in the fiscal third quarter.
Factors to Note
Strong demand in the process and hybrid markets and improving supply chains are likely to have driven Emerson’s fiscal third-quarter performance.
Underlying sales growth in the Americas region is expected to have boosted the performance of the Intelligent Devices unit. We expect the segment’s revenues to increase 10.4% from the third-quarter fiscal 2022 reported number.
The AspenTech acquisition and strength in the process end market are likely to have driven the revenues of the Software and Control segment. For the fiscal third quarter, we expect the segment’s revenues to increase 14% from the year ago-reported number.
The acquisition of Fluxa (July 2022), which has enabled Emerson to leverage the former’s PKM software, its DeltaV control system and life sciences automation software to provide customers with a comprehensive line of solutions for developing new drugs, is likely to have aided the company’s top line in the third quarter of fiscal 2023. We expect fiscal third-quarter revenues to climb 11.5% from the year-ago period. For the to-be-reported fiscal quarter, we anticipate adjusted earnings to increase 17.3% from the year-ago reported number.
However, the increasing cost of sales is likely to have impacted EMR’s margin performance in the fiscal third quarter. Given the company’s substantial international operations, foreign currency headwinds are expected to have dampened the company’s top-line growth.
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote
Earnings Whispers
Our proven model suggests an earnings beat for EMR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: EMR has an Earnings ESP of +2.35% as the Most Accurate Estimate is pegged at $1.12, higher than the Zacks Consensus Estimate of $1.09. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR carries a Zacks Rank of 2.
Highlights of Q2 Earnings
Emerson reported second-quarter fiscal 2023 (ended Mar 31, 2023) adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of adjusted earnings of 97 cents per share. The bottom line declined 15.5% in the reported quarter. Emerson’s net sales of $3,756 million beat the consensus estimate of $3,650 million. The top line increased 14% year over year.
Other Stocks to Consider
Here are some other companies within the broader Industrial Products sector, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter results on Jul 27. AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while matching in one, the average beat being 8%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3. The company is slated to release second-quarter 2023 results on Aug 2.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.