Emerson Electric Co. (EMR) Misses Q2 EPS by 4c; Reaffirms FY Outlook

Emerson Electric Co. (NYSE: EMR) reported Q2 EPS of $0.77, $0.04 worse than the analyst estimate of $0.81. Revenue for the quarter came in at $5.8 billion versus the consensus estimate of $5.9 billion.

“The second quarter results reflect several unanticipated external factors, including unusual weather and weaker business investment in the U.S., and a more cautious approach by customers on large global project execution,” said Chairman and Chief Executive Officer David N. Farr. “Looking through these issues, operational performance was strong, with improving profitability and solid cash flow. As we had been expecting, order trends accelerated significantly late in the quarter, with momentum expected to continue as global economies strengthen. Demand improvement along with continued technology and capacity investments are expected to drive stronger growth in the second half and next year.”

Emerson Electric Co. sees FY2014 EPS of $3.68-$3.80, versus the consensus of $3.77.

“The slower than expected sales growth in the second quarter increases pressure on the second half of the year, but the strong orders inflection suggests momentum is building,” Farr said. “Continued short-cycle orders strength and conversion of elevated backlog will be key for meeting expectations in 2014. Current demand trends indicate the pace of growth should accelerate into next year.”

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

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