Emerson Electric (EMR) Tops Q2 EPS by 3c; Guides In-Line

Emerson Electric (NYSE: EMR) reported Q2 EPS of $0.66, $0.03 better than the analyst estimate of $0.63. Revenue for the quarter came in at $4.9 billion versus the consensus estimate of $4.89 billion.

GUIDANCE:

Emerson Electric sees FY2016 EPS of $3.05-$3.25, versus the consensus of $3.05.

"While pressure from global economic conditions continued, our second quarter results reflected varying levels of incremental improvement in our businesses," said Chairman and Chief Executive Officer David N. Farr. "The restructuring efforts we initiated last February are generating the margin improvement we expected, while at the same time trailing three-month underlying order rates improved sequentially throughout the quarter. Conditions in our oil and gas and industrial served markets will remain challenging, but order trends in our other markets are expected to strengthen in the second half of the fiscal year. As a result, the Company continues to expect better second half performance in terms of both profitability and underlying sales as our restructuring actions take hold."

"In April, we took another important step in our strategic portfolio repositioning plan by filing the Vertiv Form 10 for the Network Power spinoff," Farr continued. "While working diligently on the spin process, we continue to discuss the potential sale of the Network Power business with interested parties. In addition, the sale process for the motors and drives and power generation businesses is well underway. There is still much work to be done to complete our repositioning strategy, but we remain committed to substantially completing these actions by the end of the fiscal year in order to position both Emerson and Vertiv for growth and to drive shareholder value."

For earnings history and earnings-related data on Emerson Electric (EMR) click here.

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