Emerson (EMR) Beats on Q1 Earnings, Revenues
Emerson Electric Co. EMR 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.
However, investors should note that, the company has been suffering from low revenues over the last few quarters due to negative effect of currency fluctuations. Consequently, in the last four trailing quarters, EMR has reported an average negative earnings surprise of 3.7%. The company projected appreciation of dollar to weigh on its quarterly earnings in the coming quarters as well.
Also, earnings estimate revisions for the quarter have moved south over the last month for the company, on apprehensions regarding both currency risks and slowing revenue growth.
Currently, EMR has a Zacks Rank #4 (Sell) but that could change following its first quarter fiscal 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: EMR beats on earnings. Adjusted earnings per share came in at 56 cents, higher than the Zacks Consensus Estimate of 51 cents.
Revenue: Revenues of $4,713 million surpassed the Zacks Consensus Estimate of $4,642 million.
Key Stats: Despite the beat, revenues for the quarter were down quite significantly compared with the previous year, as Emerson continued to grapple with challenging economic conditions and adverse currency translation effect.
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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