Free Post Earnings Research Report: Emerson Electric Company’s Quarterly Earnings Advanced 31.03%; Surpassed Expectations
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LONDON, UK / ACCESSWIRE / May 21, 2018 / If you want access to our free earnings report on Emerson Electric Co. (NYSE: EMR) (“EMR”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EMR. On May 01, 2018, Emerson Electric reported financial results for the second quarter of 2018 ending March 31, 2018. EMR's second quarter results mark an excellent end to the first half in which strong global markets drove underlying growth, and the businesses delivered healthy incremental margins. Additionally, earnings exceeded expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Emerson Electric most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
EMR's total revenues for Q2 FY18 reached $4.25 billion, reflecting an increase of 18.86% from $3.57 billion in Q2 FY17 led by global economic conditions and continued favorable demand. The reported revenue number exceeded analysts' consensus estimates of $4.20 billion. In the quarter under review, underlying sales increased 8% excluding favorable currency of 3% and an impact from acquisitions and divestitures of 8%. Besides, both mature and emerging markets delivered high-single digit underlying growth in the reported quarter.
During Q2 FY18, EMR's cost of sales was $2.42 billion, 20.13% higher than $2.02 billion in Q2 FY17. The Company incurred selling, general, and administrative (SG&A) expenses of $1.03 billion in Q2 FY18, 18.89% higher than the $868 million reported in Q2 FY17. EMR's earnings before interest and tax (EBIT) margin reduced by 0.70 percentage points to 16.30% in Q2 FY18 from 17% in Q2 FY17.
EMR's earnings from continuing operations were $489 million for the quarter ending March 31, 2018, an increase of 27.34% from $384 million in the same period last year. The Company's diluted earnings per share (DEPS) from continuing operations was $0.76 in Q2 FY18, up 31.03% from $0.58 in Q2 FY17. This was higher than analysts' consensus estimates of $0.71 per share.
Emerson Electric's Segment Details
During Q2 FY18, the Automation Solutions segment's sales were $2.77 billion, up 30.89% on a y-o-y basis, with underlying sales up 10% excluding favorable currency of 4% and an impact from acquisitions of 17%. This segment had earnings of $436 million in Q2 FY18 compared to $328 million in Q2 FY17, reflecting an increase of 32.93%.
The Commercial & Residential Solutions segment reported sales of $1.48 billion in Q2 FY18, an increment of 1.58% from Q2 FY17. The segment's Climate Technologies sub-segment's sales advanced 6.62% to $1.13 billion on a y-o-y basis, while its Tools & Home Products sub-segment's sales decreased 11.69% to $355 million on a y-o-y basis in Q2 FY18. The Commercial & Residential Solutions segments had earnings of $349 million in the quarter under review, an increase of 1.16% from $345 million in the previous year's same quarter.
Cash Matters
EMR had cash and cash equivalents of $2.44 as on March 31, 2018, a decrease of 51.50% from $5.04 billion as on March 31, 2017. The Company's long-term debt declined 12.03% to $3.36 billion at the end of Q2 FY17 from $3.82 billion at the end of Q2 FY17.
EMR's cash flow from operating activities was $944 million for the six months ending March 31, 2018, 6.63% lower than $1.01 billion for the six months ending March 31, 2017. The Company incurred capital expenditures of $194 million in H1 FY18, same as in H1 FY17.
EMR distributed dividends of $618 million in H1 FY18, a slight decrease of 0.48% from $621 million in H1 FY17. The Company spent $750 million on repurchases of common stock in H1 FY18, an increase of 525% from $120 million in H1 FY17.
Outlook
EMR raised its full-year 2018 sales guidance to the high-end of the previously communicated range and also increased the expected earnings per share range. The Company now expects net sales growth of approximately 13% in FY18, with Automation Solutions up 20%, and Commercial & Residential Solutions up 2%. The Company expects its GAAP earnings per share to be in the range of $3.10 to $3.20 in FY18, up from its prior guidance of $3.05 to $3.15.
On May 01, 2018, EMR'S Board of Directors declared the regular quarterly cash dividend of $0.485 per share of common stock, payable on June 11, 2018, to stockholders of record on May 11, 2018.
Stock Performance Snapshot
May 18, 2018 - At Friday's closing bell, Emerson Electric's stock marginally rose 0.23%, ending the trading session at $73.14.
Volume traded for the day: 1.80 million shares.
Stock performance in the last month – up 3.50%; previous three-month period – up 0.21%; past twelve-month period – up 25.13%; and year-to-date – up 4.95%
After last Friday's close, Emerson Electric's market cap was at $46.32 billion.
Price to Earnings (P/E) ratio was at 27.00.
The stock has a dividend yield of 2.65%.
The stock is part of the Industrial Goods sector, categorized under the Industrial Electrical Equipment industry. This sector was up 0.8% at the end of the session.
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