ST. LOUIS - Emerson Electric Co. (NYSE: NYSE:EMR) reported lower-than-expected earnings and revenue for its fiscal third quarter on Wednesday, though shares edged slightly higher in pre-market trading.
The automation company posted adjusted earnings per share of $1.29, missing analyst estimates of $1.41. Revenue came in at $3.95 billion, below the consensus forecast of $4.44 billion.
Compared to the same quarter last year, Emerson's revenue grew 11% to $4.38 billion. The company said underlying sales, which exclude currency impacts and acquisitions/divestitures, increased 3% year-over-year.
"Emerson delivered another strong quarter, with solid underlying orders growth and with profitability and cash flow both exceeding expectations," said CEO Lal Karsanbhai in a statement. He noted demand in process and hybrid markets continues to meet expectations, led by a "constructive capex cycle."
For the full fiscal year 2024, Emerson now expects revenue growth of approximately 15% and underlying sales growth of around 6%. The company forecasts adjusted earnings per share in the range of $5.45 to $5.50.
Emerson also announced it has completed the previously disclosed sale of its Copeland note receivable for $1.9 billion in pre-tax cash proceeds. The company plans to use proceeds from this and the pending sale of its 40% Copeland equity stake to pay down debt.
Shares of Emerson were up 0.3% in pre-market trading following the earnings release. The stock has gained about 5% year-to-date.
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