Shares of Emerson Electric Co. (EMR) - Get Emerson Electric Co. Report fell 1.11% to $66.90 Tuesday after the technology and engineering company missed Wall Street's first-quarter revenue expectations.
The St. Louis-based company reported earning $465 million or 74 cents a share, up from $392 million or 61 cents a share a year ago, and beating analysts' expectations of 66 cents a share. Emerson Electric said underlying growth reflected broad-based demand in global industrial markets, steady growth in North American air conditioning markets and favorable trends in global cold chain and professional tools markets.
The company, which makes process controls systems, valves and analytical instruments, posted revenue of $4.15 billion, up 9% from $3.82 billion a year ago, but short of Wall Street's forecasts of $4.23 billion.
"As expected, our Commercial & Residential Solutions business felt the crosswinds of weakening consumer demand in China that began in the second half of 2018," Chairman and CEO David N. Farr said in a statement. "We continue to watch the situation carefully, and we are optimistic our China Commercial & Residential Solutions team will achieve positive underlying orders and sales in the second half of 2019."
Emerson Electric said it expects full-year earnings to be $3.60 to $3.75 a share, which the company said reflected lower incentive compensation expense, improvement in the estimated full-year tax rate and accelerated timing of share repurchases. The company said it expects full-year net sales to grow 7% to 10% and underlying sales to increase 4%, to 7%.
Farr said that "full-year orders, underlying sales, profitability and cash flow are on track to deliver a strong 2019."