Emerson Electric (NYSE:EMR) shares surged Wednesday after reporting its latest quarterly results, which missed consensus estimates but beat the analyst consensus for Q2 EPS guidance.
The company reported Q1 EPS of $0.78, $0.26 worse than the analyst estimate of $1.04. Revenue for the quarter came in at $3.37 billion versus the consensus estimate of $3.91 billion.
Despite revenue missing expectations, it grew by 22% year-on-year, while underlying orders increased by 4% compared to the same quarter last year.
Looking ahead, Emerson Electric sees Q2 2024 EPS of $5.30 to $5.45, versus the consensus of $5.26, while net sales growth for the period is expected to be around 14.5% to 17%.
"Our strong start to the year, continued focus on execution, and resilient process and hybrid demand provide the confidence to update our 2024 outlook," said Emerson CEO Lal Karsanbhai.
Emerson shares are up more than 11% at the time of writing.
Following the report, analysts at Deutsche Bank maintained a Hold rating and $106 price target on the stock, saying, "Emerson delivered a solid core operating beat that was broad-based across most of its segments, reported underlying order growth ahead of its 1H expectations, and provided 2Q24/implied 2H24 guidance that bracketed consensus forecasts.'
"Investor interest in the name has been low since last earnings season, and so we think expectations were relatively low, setting the stage for share price
outperformance today," they added.