Emerson Electric Co (NYSE:EMR) reported downbeat sales for its third quarter on Wednesday.
The company reported third-quarter FY24 net sales growth of 11% Y/Y to $4.38 billion, beating the consensus of $4.29 billion. Underlying sales were up 3% Y/Y, and underlying orders increased by 3% Y/Y in the quarter. Adjusted EPS improved 11% Y/Y to $1.43, beating the consensus of $1.42.
Emerson President and Chief Executive Officer Lal Karsanbhai said, "Demand in process and hybrid markets, led by a constructive capex cycle, continues to meet expectations. Our operating leverage performance demonstrates the benefits of our highly differentiated technology and world-class Emerson Management System, giving us the confidence to execute on our plan for 2024."
For FY24, Emerson Electric revised its net sales growth outlook to ~15% (prior: 15% – 16%), with underlying sales growth to ~6% (from 5.5%-6.5% earlier) and adjusted EPS to $5.45-$5.50 (from $5.40-$5.50) vs. consensus $5.47.
Emerson Electric shares fell 7.7% to close at $99.54 on Wednesday.
These analysts made changes to their price targets on Emerson Electric following earnings announcement.
Oppenheimer analyst Christopher Glynn maintained Emerson Electric with an Outperform and lowered the price target from $125 to $120.
Wells Fargo analyst Joseph O'Dea maintained Emerson Electric with an Overweight rating, while cutting the price target from $137 to $128.
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