Emerson Electric's Stock Falls After Missed Earnings Estimate

Emerson Electric Co.'s stock (EMR, -0.25%) experienced a 4.7% decline in premarket trading on Tuesday following the release of the company's fiscal fourth-quarter earnings report, which fell short of analyst estimates.

Strong Q4 Earnings Growth, But Below Expectations

Emerson Electric's earnings for the three months ended September 30 showed a significant increase of approximately 33%. The company reported earnings of $904 million, or $1.22 per share, compared to $603 million, or 82 cents per share, in the same quarter last year. However, the adjusted earnings for the fourth quarter came in at $1.29 per share, slightly below the FactSet consensus estimate of $1.31 per share.

Missed Revenue Expectations

While Emerson Electric saw a 5% increase in revenue to just under $4.1 billion, the figure still missed the analyst estimate of $4.2 billion.

Q1 and 2024 Outlook

For the first quarter of the upcoming fiscal year, Emerson Electric stated that it anticipates adjusted earnings of $1 to $1.05 per share, compared to the analyst estimate of $1.02 per share. Looking ahead to 2024, the company expects adjusted earnings to range between $5.15 and $5.35 per share, surpassing the analyst estimate of $4.93 per share.

Buyback Plan Announced

In addition to its earnings report, Emerson Electric announced plans to repurchase $500 million worth of stock in 2024.

With this latest earnings report, Emerson Electric faces the challenge of meeting market expectations while capitalizing on its strong performance and growth potential.