Emerson reports EPS in-line, revs in-line; reaffirms FY14 guidance
Reports Q1 (Dec) earnings of $0.67 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.67; revenues rose 1.0% year/year to $5.61 bln vs the $5.55 bln consensus. Underlying sales grew 3%, as divestitures deducted 3%and acquisitions added 1%. Global market conditions reflected slowly improving business investment with mixed demand among industries, as the U.S. grew 3%, Asia grew 10%, and Europe was flat. Strong emerging market growth was led by a 14% increase in China.
Co reaffirms guidance for FY14, sees FY14 revs of (1)-1% to ~$24.42-24.92 bln vs. $24.82 bln Capital IQ Consensus Estimate. Underlying orders growth has been between 3 and 4% for several months, reflecting a slowly improving but uncertain macroeconomic environment. Emerson's outlook for 2014 is unchanged, with underlying sales growth of 3 to 5% and net sales of (1) to 1%, reflecting completed acquisitions, divestitures, and currency translation. Margin is expected to improve approximately half a%, as benefits from portfolio changes and volume leverage are partially offset by accelerated strategic investments. Excluding impairments and repatriation charges in the prior year, earnings per share are expected to increase 4 to 7%, or 33 to 38% on a reported basis.
Co reaffirms guidance for FY14, sees FY14 revs of (1)-1% to ~$24.42-24.92 bln vs. $24.82 bln Capital IQ Consensus Estimate. Underlying orders growth has been between 3 and 4% for several months, reflecting a slowly improving but uncertain macroeconomic environment. Emerson's outlook for 2014 is unchanged, with underlying sales growth of 3 to 5% and net sales of (1) to 1%, reflecting completed acquisitions, divestitures, and currency translation. Margin is expected to improve approximately half a%, as benefits from portfolio changes and volume leverage are partially offset by accelerated strategic investments. Excluding impairments and repatriation charges in the prior year, earnings per share are expected to increase 4 to 7%, or 33 to 38% on a reported basis.