Emerson Electric misses revenue estimates, flags Middle East impact

Emerson Electric Co.

Emerson Electric Co.

EMR

0.00

- Emerson Electric EMR.N missed Wall Street expectations for second-quarter revenue on Tuesday, with the automation technology firm saying the Middle East conflict had an impact on sales during the period.

Shares of the company were down about 2% in after-hours trading.

  • Total revenue for the quarter ended March 31 rose 3% to $4.56 billion, compared with analysts' estimates of $4.6 billion, according to data compiled by LSEG.

  • CEO Lal Karsanbhai said, "While sales were impacted by the conflict in the Middle East, margins exceeded expectations, and we achieved strong adjusted earnings per share."

  • Emerson expects full-year adjusted profit between $6.45 and $6.55 per share, the midpoint of which is in line with Wall Street estimates of $6.50.

  • The St. Louis, Missouri-based company reported an adjusted quarterly profit of $1.54 per share, compared to $1.48 apiece a year ago.

  • Analysts, on average, were expecting a profit per share of $1.53, as per data compiled by LSEG.

  • The U.S. manufacturing Purchasing Managers' Index rose to 52.7 in March from 47.9 in December, according to the Institute for Supply Management's data, signaling a rebound in factory activity that could support demand for industrial offerings.

  • Earlier on Tuesday, peer Rockwell Automation ROK.N raised its annual profit forecast after reporting better-than-expected second-quarter results, helped by higher demand for its factory automation systems and robotics control software.