Engineering and automation solutions company Emerson (NYSE: EMR) will be announcing earnings results this Tuesday after market hours. Here’s what investors should know.
Emerson Electric met analysts’ revenue expectations last quarter, reporting revenues of $4.35 billion, up 4.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates.
Is Emerson Electric a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Emerson Electric’s revenue to grow 3.7% year on year, improving from the 1.3% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Emerson Electric has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Emerson Electric’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AMETEK delivered year-on-year revenue growth of 11.3%, beating analysts’ expectations by 0.6%, and LSI reported revenues up 13.6%, topping estimates by 9%. AMETEK traded up 1.1% following the results while LSI was also up 6.7%.
Read our full analysis of AMETEK’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 9.4% on average over the last month. Emerson Electric is up 3.5% during the same time and is heading into earnings with an average analyst price target of $164.17 (compared to the current share price of $137.30).
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