ST. LOUIS — Emerson today reported results for its first quarter ended December 31, 2023 and updated its full year outlook for fiscal 2024. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024 to stockholders of record on February 16, 2024.
On a per-share basis, the St. Louis-based company said it had profit of 25 cents. Earnings, adjusted for one-time gains and costs, were $1.22 per share.
The results beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.04 per share.
The maker of process controls systems, valves and analytical instruments posted revenue of $4.12 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $3.89 billion.
For the current quarter ending in March, Emerson Electric expects its per-share earnings to range from $1.22 to $1.26.
The company expects full-year earnings in the range of $5.30 to $5.45 per share.
Management Commentary
“Emerson’s first quarter results exceeded expectations in key financial metrics including underlying sales, operating leverage and adjusted earnings per share,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “Our strong start to the year, continued focus on execution, and resilient process and hybrid demand provide the confidence to update our 2024 outlook.”
Karsanbhai continued, “NI, now referred to as Test & Measurement, started the year strong delivering robust sales and margins. We have increased and accelerated our synergy plan in Test & Measurement and remain focused on creating value.”
2024 Outlook
The following table summarizes the fiscal year 2024 guidance framework. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.
Notes:
1 Results are presented on a continuing operations basis.
2 Underlying orders does not include AspenTech.
3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.
4 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.
5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, the income/loss of Emerson’s 40% share of Copeland, the amortization of acquisition-related inventory step-up, acquisition/divestiture fees and related costs, discrete tax benefits, an AspenTech Micromine purchase price hedge, and write-offs associated with Emerson’s Russia exit.
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