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, the company’s operations have been suffering as a result of slow spending in general industrial markets. This has affected the company’s order rates across the related segments and pulled down the sales figure.
EMR has had a decent earnings history, having beaten estimates twice over the four trailing quarters, for an average positive earnings surprise of 4.4%.
Currently, EMR has a Zacks Rank #3 (Hold) but that could change following its first-quarter fiscal 2018 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 from continuing operations came in at 58 cents per share, beating the Zacks Consensus Estimate of 54 cents.
Revenue: Revenues of $3,816 million beat the Zacks Consensus Estimate of $3,716 million, and grew 18.7% year over year.
Key Stats: Emerson continues to see recovery in economic conditions in its key end markets. The company witnessed strong momentum in the Automation Solutions segment, and the company expects this growth trend to continue in rest of fiscal 2018. In light of these trends, the company raised its sales and earnings guidance for fiscal 2018.
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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