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Emerson Electric Co. (EMR), headquartered in St. Louis, Missouri, is a global technology and engineering leader providing innovative solutions for industrial, commercial, and residential markets. With a market cap of $63.2 billion, Emerson delivers advanced automation technologies and services, supporting businesses worldwide. The company will announce its Q4 earnings before the market opens on Tuesday, Nov. 5.
Ahead of the event, analysts expect EMR to report a profit of $1.47 per share, up 14% from $1.29 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.
Emerson's adjusted earnings of $1.43 per share for the last quarter surpassed the consensus estimate marginally. Higher profits drove EMR’s Q3 earnings beat.
For fiscal 2024, analysts expect EMR to report EPS of $5.48, up 23.4% from $4.44 in fiscal 2023.
EMR stock is up 13.5% YTD, significantly underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Industrial Select Sector SPDR Fund’s (XLI) 22.2% gain over the same time frame.
On Aug. 7, Emerson Electric saw its shares drop by over 7% after reporting Q3 earnings results. While revenue of $4.38 billion slightly missed analysts’ expectations, the blow also came from weaker discrete automation orders, down low single digits both annually and sequentially.
Adding to the concerns, the company’s cash reserves dropped to $2.3 billion, a steep fall from $8.1 billion last year. The decline stemmed from strategic investments and acquisitions.
The consensus opinion on EMR stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 20 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” four indicate a “Hold,” and one advises “Moderate Sell.”
EMR's average analyst price target is $126.75, suggesting a potential upside of 14.8% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
