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Emerson (EMR) Q2 Earnings in Line, Guides Up

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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 favourable 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 decent earnings history, having beaten estimates thrice over the four trailing quarters, for an average positive earnings surprise of 5.5%.

Emerson Electric Company Price and EPS Surprise

Currently, EMR has a Zacks Rank #2 (Buy) but that could change following its second-quarter fiscal 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Earnings: EMR reported in-line earnings. Adjusted earnings from continuing operations came in at 58 cents per share, meeting the Zacks Consensus Estimate.

Revenue: Revenues of $3,574 million surpassed the Zacks Consensus Estimate of $3,489 million.

Key Stats: Emerson continues to see recovery in economic conditions in its key end markets. The company witnessed strong growth in the Commercial & Residential Solutions platform. In light of these trends, the company raised its full year sales and earnings guidance.

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!

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