/Emerson%20Electric%20Co_%20logo%20on%20phone-by%20T_Schneider%20via%20Shutterstock.jpg)
With a market cap of $53.3 billion, Emerson Electric Co. (EMR) operates as a software company, providing various solutions in the Americas and internationally. Based in Saint Louis, Missouri, the company operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, Test & Measurement, and AspenTech segments. EMR is expected to announce its Q2 results before the market opens on Wednesday, May 7.
Ahead of the event, analysts expect EMR to report an adjusted profit of $1.42 per share, up 4.4% from the year-ago quarter's profit of $1.36 per share. Moreover, the company has surpassed analysts' earnings estimates in each of the past four quarters.
For the full fiscal 2025, analysts expect EMR to report an adjusted EPS of $5.93, up 8% from $5.49 in fiscal 2024. Additionally, in fiscal 2026, its adjusted earnings are expected to grow 7.6% year-over-year to $6.38 per share.
Over the past year, EMR shares have declined 3.9%, underperforming the S&P 500 Index’s ($SPX) 9.4% gains and the Industrial Select Sector SPDR Fund’s (XLI) 5.4% returns over the same time frame.
EMR stock declined 2.3% following its mixed Q1 earnings release on Feb. 5. The company reported a 1.4% year-over-year growth in its net sales, which came in at $4.2 billion and fell short of Street forecasts by a notable margin. Meanwhile, driven by the strength of its transformed industrial technology portfolio and Emerson Management System, the company’s adjusted segment EBITA margin expanded 340 bps compared to the year-ago quarter to 28%, and its adjusted EBITA surged 15.3% year-over-year to $1.2 billion. Moreover, its adjusted EPS for the quarter came in at $1.38, showcasing an increase of 13.1% from the previous year’s quarter and surpassing the consensus estimates by 7.8%.
The consensus view on EMR stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, opinions include 17 "Strong Buys," one “Moderate Buy,” four “Holds,” one “Moderate Sell,” and one "Strong Sell." The stock’s mean price target of $130.08 represents a 23.6% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
