Emerson Electric Co (EMR) Reports 10% Increase in Net Sales for Fiscal Year 2023
Emerson Electric Co (NYSE:EMR) reported a 10% increase in net sales for the fiscal year 2023, reaching $15,165 million.
GAAP Earnings Per Share increased by 18%, from $3.16 in 2022 to $3.72 in 2023.
Free Cash Flow saw a significant increase of 35%, from $1,749 million in 2022 to $2,363 million in 2023.
The company also declared a quarterly cash dividend of $0.525 per share of common stock payable on December 11, 2023.
Emerson Electric Co (NYSE:EMR) released its earnings report for the fourth quarter and fiscal year ended September 30, 2023, on November 7, 2023. The company reported a 10% increase in net sales for the fiscal year, reaching $15,165 million, up from $13,804 million in 2022. The company also reported a 5% increase in underlying orders and a 10% increase in underlying sales.
Financial Performance
Emerson Electric Co (NYSE:EMR) reported a significant increase in GAAP Earnings Per Share, which rose by 18% from $3.16 in 2022 to $3.72 in 2023. Adjusted Earnings Per Share also saw a 22% increase, from $3.64 in 2022 to $4.44 in 2023. The company's operating cash flow increased by 33%, from $2,048 million in 2022 to $2,726 million in 2023. Free Cash Flow also saw a significant increase of 35%, from $1,749 million in 2022 to $2,363 million in 2023.
Emerson completed an exceptional fiscal 2023 with double-digit sales growth, strong operating leverage and robust adjusted earnings per share growth, said Emerson President and Chief Executive Officer Lal Karsanbhai. This momentum and our continued focus on execution, leading technology and resilient end-markets provides confidence in our guidance for fiscal 2024.
2024 Outlook
Emerson Electric Co (NYSE:EMR) provided its initial outlook for the fiscal year 2024. The company expects net sales growth to be between 13% and 15.5%, and underlying sales growth to be between 4% and 6%. Earnings Per Share are expected to be between $3.82 and $4.02. The company also plans to return approximately $500 million to shareholders through share repurchases and approximately $1.2 billion of dividend payments.
Financial Tables Summary
The company's consolidated operating results showed a net earnings increase from $3,230 million in 2022 to $13,200 million in 2023. The consolidated balance sheets showed a significant increase in cash and equivalents from $1,804 million in 2022 to $8,051 million in 2023. The consolidated statements of cash flows showed a decrease in cash provided by operating activities from $2,922 million in 2022 to $637 million in 2023, but a significant increase in cash provided by investing activities from -$5,334 million in 2022 to $12,415 million in 2023.
Emerson Electric Co (NYSE:EMR) continues to show strong financial performance and growth, providing a positive outlook for the fiscal year 2024.
Explore the complete 8-K earnings release (here) from Emerson Electric Co for further details.
This article first appeared on GuruFocus.
