Emerson reports EPS in-line, beats on revs; raises FY17 guidance (60.37)
- Reports Q2 (Mar) earnings of $0.58 per share, in-line with the Capital IQ Consensus of $0.58; revenues fell 0.1% year/year to $3.57 bln vs the $3.49 bln Capital IQ Consensus.
- Gross profit margin of 43.6 percent improved 50 basis points versus the prior year primarily due to savings from restructuring activities in 2016.
- Co raises guidance for FY17, sees EPS of $2.55-2.65 (Prior $2.47-2.62) vs. $2.58 Capital IQ Consensus Estimate; sees net sales approximately flat y/y (Prior down 1-3% y/y)
- "We are encouraged by improving economic conditions and positive trends in capital spending. Our current order trends support positive sales growth in the second half of fiscal 2017 and leading into fiscal 2018. As we begin the third quarter, we remain focused on improving profitability and cash flow while continuing our portfolio repositioning to expand our leadership position in key served markets as evidenced by our recent completion of the Valves & Controls acquisition from Pentair. The final control management team will now focus on an aggressive integration over the remaining five months of the fiscal year."