Emerson Electric Company Down 4.02% To $86.41 After Earnings Beat

Tuesday, August 9, 2022 - Emerson Electric Company (EMR) reported upside earnings and downside revenues.

Wall Street earnings per share (EPS) projections for Emerson Electric Company were at $1.30. The company beat those estimates with an EPS of $1.38. The earnings per share of $1.38 (which represents a -6% EPS surprise) led to the company's profits rising 27% compared to last year when the firm reported an EPS of $1.09. The increase in Emerson Electric Company's annual growth rate represents how the business is performing well amid recent economic conditions.

Consensus analyst estimates were at $5.1 billion. The Industrials company missed on those expectations for its third quarter with revenue of $5 billion, a negative revenue surprise of $115 million (2%). The firm managed 7% growth year-over-year due to Emerson Electric Company reporting quarterly revenue of $4.7 billion in its year-ago quarter. Emerson Electric Company achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 4.02% to $86.41 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Emerson Electric Company a Bullish Sentiment Rank from InvestorsObserver.

Emerson Electric Company has performed a little above average during the past few months. Before the report, Emerson Electric Company received a Long-Term Technical Rank by InvestorsObserver of 56, putting it in the top half of stocks. The firm was recently trading at a 52-week low of $76.16 on July 14, 2022 and set a 52-week high on September 3, 2021 at $105.99.

Emerson Electric is a multi-industrial conglomerate that operates under two business platforms: automation solutions and commercial and residential solutions. The latter is further subdivided into two operating segments: climate technologies, which sells HVAC and refrigeration products and services as well as tools and home products, which sells tools and compressors, among other products and services. Commercial and residential solutions boasts several household brands, including Copeland, InSinkErator, and RIDGID. Automation solutions is most known for its process manufacturing solutions, which consists of measurement instrumentation, as well as valves and actuators, among other products and services. Roughly half of the firm's geographic sales take place in the United States.