- Emerson Electric Co EMR shares are up Wednesday morning following its Street-beating second quarter results.
- EMR reported second-quarter FY23 net sales growth of 14% year-over-year to $3.76 billion, beating the consensus of $3.65 billion.
- Q2 Underlying sales were up 14%, and underlying orders were up 7%.
- Adjusted EPS improved 25% Y/Y to $1.09, beating the consensus of $0.97.
- Earnings from continuing operations increased 18% Y/Y to $505 million.
- Emerson's cash provided by operating activities year-to-date totaled $486 million, compared to $965 million in 2Q22.
- Q2 Operating cash flow was $575 million, up 51% Y/Y, and adjusted free cash flow was $513 million.
- Sales by Segments: Final Control $992 million (+12% Y/Y), Measurement & Analytical $888 million (+15% Y/Y), Discrete Automation $683 million (+6% Y/Y); Safety & Productivity $361 million (+2% Y/Y), Control Systems & Software $623 million (+9% Y/Y), and AspenTech $230 million (+172% Y/Y).
- Adjusted Total Segment EBITA was $924 million (+31.4% Y/Y), and the margin improved to 24.6% from 21.4% in 2Q22.
- Also Read: Emerson Electric Acquires National Instruments For $8.2B
- EMR held cash and equivalents of $2.05 billion as of March 31, 2023.
- "Emerson's outstanding second quarter results were driven by strong end market demand and excellent operational execution from our global teams," commented Emerson President and Chief Executive Officer Lal Karsanbhai.
- Management: EMR announced the promotion of Mike Baughman, vice president, controller, and chief accounting officer, to executive vice president and chief financial officer, effective May 10.
- Baughman succeeds Frank Dellaquila, who will retire after 32 years with the company.
- 3Q23 Outlook: Emerson expects net sales growth of 10.5%-12.5%, with underlying sales growth of 10% - 12%. It sees Adjusted EPS of $1.07 - $1.11 versus $1.07 consensus.
- FY23 Outlook, raised: Emerson Electric expects net sales growth of 9%-10.5% (prior expectation 8%-10%), with underlying sales growth of 8.5%-10% (prior 6.5%-8.5%).
- It expects an adjusted EPS of $4.15-$4.25 (prior $4.00-$4.15) versus the consensus of $4.07. Operating Cash Flow of $2.5 billion and FCF of $2.2 billion.
- Price Action: EMR shares are trading higher by 5.45% at $86.70 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
