Emerson Electric (EMR) Reports Q4 Earnings

Revenue Misses Estimates, Guidance Disappoints

Emerson Electric (NYSE: EMR) fell short of revenue expectations in Q4 CY2024, reporting a modest 1.4% year-on-year increase to $4.18 billion. The company's revenue guidance for Q1 CY2025 also underwhelmed, coming in at $4.38 billion, 2.6% below analyst estimates.

Earnings Beat, Strong Margins

Despite the revenue shortfall, Emerson's non-GAAP profit per share of $1.38 exceeded analyst estimates by 8%. The company's adjusted EBITDA of $1.17 billion topped estimates and represented a 28% margin.

Key Highlights:

* Revenue: $4.18 billion (1.4% YoY growth)
* Adjusted EPS: $1.38 (8% beat)
* Adjusted EBITDA: $1.17 billion (5.8% beat)
* Q1 CY2025 Revenue Guidance: $4.38 billion
* Full-year Adjusted EPS Guidance: $5.95

Company Overview:

Founded in 1890, Emerson Electric is a global technology and engineering company operating in industrial, commercial, and residential markets. It leverages the Internet of Things (IoT) to provide solutions such as factory automation and smart home technologies.

Sales Growth:

Emerson Electric's annualized revenue growth of 11.9% over the last two years exceeds its five-year trend, suggesting recent demand acceleration. However, the company's revenue growth outlook for the next 12 months is only 4.7%.

Operating Margin:

Emerson Electric's operating margin has improved over the last five years, reaching 24.2% in Q4. The company has demonstrated efficient cost management.

Earnings Per Share:

Emerson Electric's EPS has grown consistently over the last five years, outpacing revenue growth. This is driven by improved profitability and share buybacks.

Key Takeaways:

While Emerson Electric exceeded EBITDA expectations and beat EPS estimates, its revenue shortfall and weak guidance temper enthusiasm. The stock reacted negatively to the news, falling 2.1% post-earnings.

For an in-depth analysis of Emerson Electric, access our comprehensive research report here.