Emerson Electric Reports Mixed Q4 Results, Guides Q1, FY22 EPS Above Consensus

Emerson Electric Co. EMR reported fourth-quarter net sales growth of 8.5% year-over-year to $4.95 billion, missing the consensus of $5.09 billion. Underlying sales were up 7%.
Adjusted EPS improved to $1.21 from $1.10 in 4Q20, beating the consensus of $1.18.
Sales by segments: Measurement & Analytical Instrumentation $860 million (+3.9% Y/Y), Valves, Actuators & Regulators $961 million (-1.9% Y/Y), Industrial Solutions $610 million (+12.6% Y/Y), Systems & Software $747 million (+14.1% Y/Y), Climate Technologies $1.29 billion (+16% Y/Y) and Tools & Home Products $486 million (+9.5% Y/Y).
North America continued its strong recovery for the quarter despite supply chain challenges, with the Americas up 16%, while Europe was down 2%. Asia, Middle East & Africa was down 3%, with China up 10%.
Pretax Margin of 16.7% down 10 bps and Adjusted EBIT Margin was 19%, down 30 bps.
Emerson Electric's Operating Cash Flow was $3.6 billion (+16% Y/Y); Free Cash Flow was $3 billion, up 18%.
1Q22 Outlook: Emerson Electric expects net sales growth of 7% - 9%, with underlying sales growth of 7% - 9%. It expects an Adjusted EPS of $0.98 - $1.02 versus the consensus of $0.94.
FY22 Outlook: Emerson Electric expects net sales growth of 5%-7%, with underlying sales growth of 6%-8%. It expects an Adjusted EPS of $4.82 - $4.97 versus the consensus of $4.57.
Price Action: EMR shares are lower by 1.15% at $99 during the premarket session on Wednesday.

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