Engineering and automation solutions company Emerson (NYSE: EMR) will be reporting results this Wednesday morning. Here’s what investors should know.
Emerson Electric missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $4.55 billion, up 3.9% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and a slight miss of analysts’ revenue estimates.
Is Emerson Electric a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Emerson Electric’s revenue to grow 6.1% year on year to $4.90 billion, slowing from the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Emerson Electric has missed Wall Street’s revenue estimates twice since going public.
Looking at Emerson Electric’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AMETEK delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 4.3%, and Vontier reported flat revenue, topping estimates by 0.7%. AMETEK traded up 9.8% following the results while Vontier was down 10%.
Read our full analysis of AMETEK’s results here and Vontier’s results here.
Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Emerson Electric is up 4.6% during the same time and is heading into earnings with an average analyst price target of $150.96 (compared to the current share price of $141).
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