ST. LOUIS - Emerson Electric Co. (NYSE: NYSE:EMR) reported a stronger-than-expected performance for its second quarter, with adjusted earnings per share (EPS) and revenue surpassing analyst projections. EMR shares were up 0.9% in premarket trading.
The company announced a second-quarter adjusted EPS of $1.36, which exceeded the analyst estimate of $1.25. Revenue also topped expectations, coming in at $4.38 billion against the consensus estimate of $4.29 billion, marking a significant increase from the previous year.
Emerson's robust results were driven by sales growth, margin expansion, and earnings that all exceeded expectations, according to Emerson President and Chief Executive Officer Lal Karsanbhai. The company's focus on execution and its transformed portfolio contributed to the strong quarter, as did its ability to deliver differentiated solutions to customers.
The company's guidance for the third quarter of 2024 anticipates an adjusted EPS range of $1.38 to $1.42, which is slightly below the analyst consensus of $1.44. The projected net sales growth for the quarter is between 11% and 12.5%.
For the second quarter, Emerson also declared a quarterly cash dividend of $0.525 per share of common stock, payable on June 10, 2024, to stockholders of record as of May 17, 2024.
Looking ahead, the company updated its full-year outlook for fiscal 2024, reflecting its confidence in continued strong performance. Emerson's second-quarter success, particularly in gross margin performance, underscores the strength of the company's portfolio and management system, positioning it well for future value creation for its shareholders.
The company's full-year outlook for 2024 includes an anticipated net sales growth of 15% to 16% and an adjusted EPS range of $5.40 to $5.50. This guidance assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments.
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