What to Expect When Emerson Electric (EMR) Reports Earnings Tomorrow
NEW YORK (TheStreet) -- Shares of Emerson Electric (EMR) - Get Report were gaining 0.3% to $47.37 in morning trading on Monday, ahead the electrical equipment and engineering services company's fiscal fourth quarter earnings report, which is due out before the market opens on Tuesday.
Analysts expect Emerson Electric to report earnings of 97 cents a share and revenue of $5.83 billion for the fourth quarter of fiscal 2015.
Emerson Electric reported earnings of 84 cents a share for the third quarter of fiscal 2015, above analysts' estimates of 83 cents a share. The company reported revenue of $5.5 billion for the fiscal third quarter, compared to analysts' estimates of $5.62 billion.
The company reported earnings of $1.30 a share for the fourth quarter of fiscal 2014, above analysts' estimates of $1.23 a share. Emerson Electric saw revenue of $6.81 billion in the year-ago quarter, in line with analysts' estimates.
TheStreet Ratings team rates EMERSON ELECTRIC CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate EMERSON ELECTRIC CO (EMR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Electrical Equipment industry and the overall market, EMERSON ELECTRIC CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- EMERSON ELECTRIC CO's earnings per share declined by 18.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EMERSON ELECTRIC CO increased its bottom line by earning $3.03 versus $2.76 in the prior year. This year, the market expects an improvement in earnings ($3.21 versus $3.03).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 16.6%. Since the same quarter one year prior, revenues fell by 12.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $499.00 million or 50.98% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Electrical Equipment industry average. The net income has decreased by 22.5% when compared to the same quarter one year ago, dropping from $728.00 million to $564.00 million.
- You can view the full analysis from the report here: EMR