Emerson Electric (NYSE: EMR) -2.1% ahead of the market on Wednesday after missing estimates for FQ1 adjusted earnings and revenue, although the company raised its FY 2023 sales and earnings forecasts.
Fourth-quarter profit rose 2.5 times to $2.33 billion, or $3.97 per share, from $896 million, or $1.50 per share, last quarter, but earnings from continuing operations fell to 0 $.56 per share from $1.25/share a year earlier, due in part to a 31% increase in the company’s stock price during FQ1 that impacted stock-based compensation plans.
Fourth-quarter revenue rose to $3.37 billion from $3.16 billion a year earlier, but was slightly below analysts’ expectations.
Emerson ( EMR ) said it now expects fiscal 2023 adjusted earnings of $4.00 to $4.15 per share, in line with analysts’ consensus estimate of $4.09, while net sales are forecast to rise 8 %-10%, which is better than previous guidance for 7%-9% growth.
For Q2, Emerson ( EMR ) sees adjusted EPS of $0.95 to $1.00, in line with analysts’ consensus of $0.95, on expected sales growth of 10.5% to 12.5%.
“We continue to actively seek opportunities to efficiently deploy capital, including our proposal to purchase National Instruments at $53 per share, which is a unique opportunity to create value for Emerson and NI shareholders,” said Chairman and CEO Lal Karsanbhai.
Shares of Emerson (EMR) have lost 5% so far this year and 4% over the past year.