Emerson Electric Q3 Outlook: Adj. EPS $1.38-$1.42 Vs. $1.44 Estimate, Revenue Growth 11%-12.5% Vs, $4.50B Estimate
Portfolio Pulse from Benzinga Newsdesk
Emerson Electric (EMR) provided its Q3 and full-year 2024 outlook, forecasting adjusted EPS below estimates for Q3 but indicating strong sales growth and significant returns to shareholders through dividends and share repurchases. The company expects net sales growth of 11%-12.5% for Q3 and 15%-16% for the full year, with adjusted EPS of $1.38-$1.42 for Q3 and $5.40-$5.50 for the full year. Additionally, Emerson plans to return approximately $500 million to shareholders via share repurchases and $1.2 billion through dividends.
May 08, 2024 | 10:59 am
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NEUTRAL IMPACT
Emerson Electric's Q3 adjusted EPS forecast falls short of estimates, but the company anticipates strong sales growth and significant shareholder returns through dividends and share repurchases in 2024.
While the Q3 adjusted EPS forecast is below estimates, indicating potential short-term pressure on the stock, the strong sales growth and substantial returns to shareholders through dividends and share repurchases are likely to have a positive impact on investor sentiment. The overall guidance suggests confidence in the company's growth trajectory and commitment to shareholder value, which could offset the negative impact of the EPS miss in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100