For the fiscal second quarter Emerson posted earnings of 80 cents a share, missing the Capital IQ Consensus Estimate of 81 cents a share by 1 cent. Revenue increased 2.5% year-over-year to $5.96 billion for the quarter. Analysts expected revenue of $5.91 billion.
Looking forward to full-year 2014 Emerson reaffirmed its guidance that sees EPS of $3.68 to $3.80 a share. Analysts expect earnings of $3.77 for the fiscal year.
"The slower than expected sales growth in the second quarter increases pressure on the second half of the year, but the strong orders inflection suggests momentum is building," chairman and CEO David N. Farr said in a press release. "Continued short-cycle orders strength and conversion of elevated backlog will be key for meeting expectations in 2014. Current demand trends indicate the pace of growth should accelerate into next year."
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TheStreet Ratings team rates EMERSON ELECTRIC CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMERSON ELECTRIC CO (EMR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."