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Emerson Electric (EMR) to Post Q3 Earnings: Is a Beat in Store?
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Emerson Electric Co. (EMR - Free Report) is likely to witness top-and-bottom-line growth when it reports third-quarter fiscal 2024 (ended Jun 30, 2024) results on Aug 7, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating growth of 12.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pinned at $1.42 per share, which has increased by a penny in the past 60 days. The figure indicates a jump of 10.1% from the prior-year reported figure. The company’s bottom line surpassed the Zacks Consensus Estimate by 7.9% in the last reported quarter. In the trailing four quarters, EMR missed estimates once but managed to beat on other occasions, delivering an average earnings surprise of 10.7%.
Let’s see how things have shaped up for Emerson prior to the announcement.
Factors Likely to Have Shaped the Quarterly Performance
Strength across Emerson’s measurement and analytical, and final control businesses, driven by solid demand in the hybrid and process end markets, is likely to have supplemented the top-line performance of its Intelligent Devices segment in the fiscal third quarter. The segment’s results are likely to reflect solid demand across the energy and power end markets, and the company’s ability for strong backlog conversion.
Underlying sales growth in the Europe, Asia, Middle East and Africa regions is expected to have boosted the performance of the safety & productivity business within the Intelligent Devices unit. However, softness in the discrete automation business, owing to sluggish demand in the market, is likely to have been a drag on the unit’s performance. We expect the Intelligent Devices segment’s revenues to increase 4.3% to $3.1 billion from the year-ago fiscal quarter.
Persistent strength in the control systems and software business, along with the AspenTech buyout, is likely to have augmented the performance of the Software and Control segment. Solid demand for the company’s products and solutions in the energy transition and traditional energy markets is expected to have acted as a tailwind for the segment.
EMR’s acquisition of National Instruments (October 2023), which has expanded its presence in high-growth end markets, including semiconductor and electronics, transportation and electric vehicles, is likely to have augmented the Software and Control segment’s top line. For the fiscal third quarter, we expect the segment’s revenues to increase 38.7% from the year-ago reported number to $1.36 billion.
Given the strength across its end markets, Emerson has provided a bullish forecast for the quarter under review. The company expects net sales to increase in the band of 11.0-12.5% year over year in the fiscal third quarter. Underlying sales are expected to increase 3.0-4.5%.
However, escalating costs and expenses, related to its acquisition, and restructuring-related actions are likely to have affected EMR’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Our proven model predicts that EMR is likely to beat earnings estimates 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: Emerson has an Earnings ESP of +0.14%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR carries a Zacks Rank of 3 at present.
Other Stocks With the Favorable Combination
Here are three other companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
The company is scheduled to release fiscal third-quarter results on Aug 5.
MWA’s earnings have surpassed the Zacks Consensus Estimate thrice in the preceding four quarters while missing the mark once, the average surprise being 51.8%.
Atkore Inc. (ATKR - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present. The company is slated to release fiscal third-quarter results on Aug 6.
ATKR’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.4%.
Plug Power, Inc. (PLUG - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Aug 8. The Zacks Consensus Estimate for Plug Power’s earnings is currently pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share reported in the year-ago quarter.
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Emerson Electric (EMR) to Post Q3 Earnings: Is a Beat in Store?
Emerson Electric Co. (EMR - Free Report) is likely to witness top-and-bottom-line growth when it reports third-quarter fiscal 2024 (ended Jun 30, 2024) results on Aug 7, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating growth of 12.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pinned at $1.42 per share, which has increased by a penny in the past 60 days. The figure indicates a jump of 10.1% from the prior-year reported figure. The company’s bottom line surpassed the Zacks Consensus Estimate by 7.9% in the last reported quarter. In the trailing four quarters, EMR missed estimates once but managed to beat on other occasions, delivering an average earnings surprise of 10.7%.
Let’s see how things have shaped up for Emerson prior to the announcement.
Factors Likely to Have Shaped the Quarterly Performance
Strength across Emerson’s measurement and analytical, and final control businesses, driven by solid demand in the hybrid and process end markets, is likely to have supplemented the top-line performance of its Intelligent Devices segment in the fiscal third quarter. The segment’s results are likely to reflect solid demand across the energy and power end markets, and the company’s ability for strong backlog conversion.
Underlying sales growth in the Europe, Asia, Middle East and Africa regions is expected to have boosted the performance of the safety & productivity business within the Intelligent Devices unit. However, softness in the discrete automation business, owing to sluggish demand in the market, is likely to have been a drag on the unit’s performance. We expect the Intelligent Devices segment’s revenues to increase 4.3% to $3.1 billion from the year-ago fiscal quarter.
Persistent strength in the control systems and software business, along with the AspenTech buyout, is likely to have augmented the performance of the Software and Control segment. Solid demand for the company’s products and solutions in the energy transition and traditional energy markets is expected to have acted as a tailwind for the segment.
EMR’s acquisition of National Instruments (October 2023), which has expanded its presence in high-growth end markets, including semiconductor and electronics, transportation and electric vehicles, is likely to have augmented the Software and Control segment’s top line. For the fiscal third quarter, we expect the segment’s revenues to increase 38.7% from the year-ago reported number to $1.36 billion.
Given the strength across its end markets, Emerson has provided a bullish forecast for the quarter under review. The company expects net sales to increase in the band of 11.0-12.5% year over year in the fiscal third quarter. Underlying sales are expected to increase 3.0-4.5%.
However, escalating costs and expenses, related to its acquisition, and restructuring-related actions are likely to have affected EMR’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote
Earnings Whispers
Our proven model predicts that EMR is likely to beat earnings estimates 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: Emerson has an Earnings ESP of +0.14%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR carries a Zacks Rank of 3 at present.
Other Stocks With the Favorable Combination
Here are three other companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Mueller Water Products, Inc. (MWA - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fiscal third-quarter results on Aug 5.
MWA’s earnings have surpassed the Zacks Consensus Estimate thrice in the preceding four quarters while missing the mark once, the average surprise being 51.8%.
Atkore Inc. (ATKR - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank of 3 at present. The company is slated to release fiscal third-quarter results on Aug 6.
ATKR’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.4%.
Plug Power, Inc. (PLUG - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Aug 8. The Zacks Consensus Estimate for Plug Power’s earnings is currently pegged at a loss of 30 cents per share, indicating an improvement from the loss of 35 cents per share reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.