Back to top

Image: Bigstock

Emerson (EMR) Q4 Earnings Beat, Top Line Weak

Read MoreHide Full Article

Emerson Electric Co. (EMR - Free Report) is a diversified global manufacturing and technology company. It offers a wide range of products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation.

EMR’s ongoing mergers and acquisitions are likely to influence it to grow its business and help it gain access to new technologies and markets across geographies. Moreover, EMR’s cost cutting and restructuring initiatives are expected to benefit its results going forward. Emerson’s results are expected to benefit from strong momentum at the company’s Network Power segment, as well as favorable trends in the U.S. construction market.

However, investors should note that, the company has been suffering from low revenues over the last few quarters due to negative effect of currency fluctuations.

EMR has had a choppy earnings history, having beaten estimates twice for as many misses over the four trailing quarters, for an average positive earnings surprise of 1.4%.

EMERSON ELEC CO Price and EPS Surprise

 

Currently, EMR has a Zacks Rank #3 (Hold) but that could change following its fourth-quarter fiscal 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: EMR beats on earnings. Adjusted earnings per share came in at 96 cents, surpassing the Zacks Consensus Estimate of 89 cents.

Revenue: Revenues of $3,932 million lagged the Zacks Consensus Estimate of $5,509 million significantly.

Key Stats: Emerson continued to grapple with challenging economic conditions and all pervasive weakness. The company witnessed year over year sales decline in all segments except Climate Technologies, which considerably weakened the top line.

Stock Price: EMR shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this EMR earnings report later!

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Emerson Electric Co. (EMR) - free report >>

Published in