/Emerson%20Electric%20Co_%20magnified%20logo%20by-%20Casimiro%20PT%20via%20Shutterstock.jpg)
Saint Louis, Missouri-based Emerson Electric Co. (EMR), with a market cap of $67.4 billion, delivers cutting-edge tech and engineering solutions across industrial, commercial, and residential markets worldwide. It is expected to announce its Q3 earnings before the market opens on Wednesday, August 7.
Ahead of the event, analysts project Emerson’s profit to surge 10.1% to $1.42 per share, from $1.29 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter grew by 24.8% year over year to $1.36, exceeding the consensus estimates by 7.9%.
Looking ahead to fiscal 2024, analysts expect Emerson to report an EPS of $5.47, up 23.2% from $4.44 in fiscal 2023, and grow another 8.4% to $5.93 in fiscal 2025.
EMR stock has rallied 21.8% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 17% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 10.9% returns over the same time frame.
EMR has surged past the broader market this year, driven by impressive sales growth in industrial tech and engineering products, higher-than-expected Q2 earnings, operational efficiency gains, and a strategic outlook raise.
Emerson stock rose 4.9% on May 8 after its stellar fiscal Q2 earnings report was released. The company reported a 16.5% annual growth in net sales and achieved organic as well as acquisition lead growth, such as the Test & Measurement segment from National Instruments. Additionally, its Q2 gross margin grew to 52.2%, which is a testament to its efficient cost management.
Emerson’s legacy isn’t just in engineering marvels. It is in rewarding its shareholders. It raised dividends for 27 consecutive years. It repurchased $2 billion worth of shares over the last two reported quarters, which demonstrates that Emerson is committed not just to innovation but also to its shareholders.
The consensus opinion on Emerson stock is bullish, with a “Strong Buy” rating overall. Out of the 21 analysts covering the stock, 17 recommend a “Strong Buy,” one advises a “Moderate Buy,” and three suggest a “Hold” rating. Over the past month, a new “Strong Buy” recommendation has been added.
The average target price for Emerson is $130.45, indicating a potential upside of 10.7% from current price levels.
On the date of publication, Sristi Jayaswal 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.
