Emerson Electric (EMR) Tops Q2 EPS by 15c, Revenue Beats, Lowers FY EPS Guidance

Emerson Electric (NYSE: EMR) reported Q2 EPS of $0.89, $0.15 better than the analyst estimate of $0.74. Revenue for the quarter came in at $4.57 billion versus the consensus estimate of $4.32 billion.

GUIDANCE:

Emerson Electric sees FY2020 EPS of $3.00-$3.20, versus the consensus of $3.00.

• Management has updated the fiscal year 2020 outlook to reflect the changing demand environment associated with COVID-19 and the concurrent unfolding energy market dynamics. GAAP earnings per share guidance is $2.62 to $2.82. Adjusted earnings per share guidance, which excludes restructuring actions and related costs, is $3.00 to $3.20, compared to prior guidance of $3.55 to $3.80. This drop in guidance reflects the negative impact of reduced global demand, partially offset by aggressive cost containment actions, reduced stock compensation and other non-operating items. Total restructuring actions for the year are now expected to be approximately $280 million, an increase of approximately $65 million compared to the previous plan. Share repurchases, now complete for the year, will be approximately $950 million, compared to the previous guidance of $1.5 billion. There is no change in the dividend plan. Lastly, we expect capital expenditures to be $550 million, compared to the previous guidance of $650 million.

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

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