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Emerson Electric Q4 sales beat estimates on broad-based demand

By Reuters News


Overview

  • U.S. automation technology firm's fiscal Q4 sales rose 7%, beating analyst expectations

  • Adjusted EPS for fiscal Q4 beat analyst expectations

  • Company raised quarterly dividend by 7% to $0.595 per share


Outlook

  • Emerson sees fiscal 2027 net sales growth of about 5%

  • Company expects fiscal 2027 adjusted EPS of about $7.25

  • Emerson projects fiscal 2027 free cash flow of $3.8 bln to $3.9 bln


Result Drivers

  • PROJECT ACTIVITY - Co said exceptional long-cycle project activity in growth verticals drove underlying orders up 14%

  • BROAD-BASED DEMAND - Co said demand was broad-based with substantial growth across all business groups and regions

  • PORTFOLIO RESILIENCE - CEO cited resilient portfolio and software-defined technology stack aligned with long-term secular trends


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Beat

$5.20 bln

$5.12 bln (21 Analysts)

Q4 Adjusted EPS

Beat

$1.86

$1.85 (23 Analysts)

Q4 EPS

$1.33

Q4 Operating Cash Flow

$1.08 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Emerson Electric Co is $180.00, about 8.2% above its November 3 closing price of $166.39

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Regal Rexnord Q3 sales beat estimates on data center demand

  • Nov 3 - AMETEK Q3 sales beat estimates, raises outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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