Emerson Electric’s stock falls sharply after profit misses analyst estimate as two business units book negative orders
Emerson Electric Co.’s stock on Tuesday fell by the largest percentage margin since June 2020, after the industrial-automation company’s fiscal fourth-quarter earnings fell short of analyst estimates.
The company said it has booked negative orders for the past two or three quarters in its Discrete Automation and Test & Measurement units, but it expects the trend to turn positive in the second half of next year.
Emerson Electric’s
EMR,
fourth-quarter earnings for the three months ended Sept. 30 rose by about 33% to $904 million, or $1.22 a share, from $603 million, or 82 cents a share, in the year-ago quarter.
Fourth-quarter adjusted earnings rose to $1.29 a share, from $1.07 a share. The latest figure fell 2 cents short of the FactSet consensus estimate of $1.31 a share.
Revenue rose 5% to just under $4.1 billion, but missed the analyst estimate of $4.2 billion.
Emerson Electric’s stock dropped 7.9%, on track for its largest one-day loss since it fell 8.2% on June 11, 2020, according to Dow Jones Market Data. The stock is trading 19.7% below its all-time closing high of $105.70 on Sept. 2, 2021.
Looking ahead at the first quarter, Emerson Electric said it expects adjusted earnings of $1 to $1.05 a share, compared to the analyst estimate of $1.02 a share.
The company said it is expecting adjusted earnings of $5.15 a share to $5.35 a share in 2024, ahead of the analyst estimate of $4.93 a share. Emerson Electric also plans to buy back $500 million of stock in 2024.
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