Stock Monitor: Altra Industrial Motion Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 28, 2018 / Active-Investors.com has just released a free earnings report Emerson Electric Co. (NYSE: EMR) ("Emerson"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=EMR. The Company reported its first quarter fiscal 2018 operating and financial results on February 06, 2018. The maker of process controls systems, valves, and analytical instruments outperformed top- and bottom-line expectations, and also raised its sales and earnings guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Altra Industrial Motion Corp. (NASDAQ: AIMC), which also belongs to the Industrial Goods sector as the Company Emerson Electric. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=AIMC
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Emerson Electric most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=EMR
Earnings Highlights and Summary
For the first quarter ended December 31, 2017, Emerson's net sales were up 19% to $3.82 billion compared to $3.22 billion in Q1 FY17, with underlying sales growing 7% on a y-o-y basis, excluding a favorable currency of 3% and an impact from acquisitions and divestitures of 9%. Emerson's revenue numbers topped analysts' estimates of $3.72 billion.
For Q1 FY18, Emerson's trailing three-month underlying orders were up 7%. The Company expects orders to trend in a range of 5% to 10% for the remainder of the year.
During Q1 FY18, Emerson's pre-tax margin of 13.2% and earnings before interest and taxes (EBIT) margin of 14.2% fell 120 basis points and 160 basis points, respectively; reflecting the dilution from the Valves & Controls acquisition. Excluding the Valves & Controls acquisition, the Company's EBIT margin increased 70 basis points to 16.5% compared to the year ago same period, driven primarily by a leverage on higher sales and benefits from the prior year's restructuring actions.
For Q1 FY18, Emerson reported a net income of $392 million, or $0.61 per diluted share, compared to $309 million, or $0.48 per diluted share, in Q1 FY17. The Company's reported quarter results included a $0.03 benefit from the lower enacted US corporate tax rate under the Tax Cuts and Jobs Act 2017 (TCJA). Emerson's Q1 FY18 results also included a provisional net tax benefit of $0.07 per share related to adoption of the TCJA, which was offset by a ($0.03) charge for Valves & Controls first year acquisition accounting and a ($0.04) tax-related loss from the divestiture of the ClosetMaid business. The Company's earnings numbers beat Wall Street's estimates of $0.54 per share.
Business Platform Results
During Q1 FY18, Emerson's Automation Solutions segment's net sales surged 31% to $2.57 billion compared to $1.97 billion in Q1 FY17, with underlying sales up 9%, excluding a favorable currency of 3% and an impact from acquisitions of 19%. Growth continued to be driven by strong MRO demand and small and mid-sized projects focused on expansion and optimization of existing facilities. The segment's margin decreased 160 basis points to 15.0% in the reported quarter. Excluding the dilutive impact of the Valves & Controls acquisition, the Company's margin increased 120 basis points to 17.8% in Q1 FY18, driven by leverage on higher sales and restructuring benefits.
For Q1 FY18, Emerson's Commercial & Residential Solutions segment's net sales were flat at $1.25 billion, with an underlying sales growth of 5%, excluding favorable currency of 2% and an impact from divestitures of 7%. The segment's margin increased 20 basis points to 20.1% in the reported quarter.
2018 Outlook
Emerson raised its full fiscal year 2018 sales and earnings per share (EPS) guidance based on stronger operational performance, increased share repurchases, and the favorable impact of the TCJA.
For FY18, Emerson is forecasting net sales to grow in the range of 11% to 13%, with underlying sales up 5% to 7%, excluding a 6% impact from acquisitions, divestitures, and currency translation. The Company's earlier guidance was a net sales growth of 8% to 10%, and an underlying sales growth of up 4% to 6%. For FY18, Emerson is estimating Automation Solutions segment's sales guidance to be in the range of 18% to 20%, with an underlying sales up 6% to 8%; and Commercial & Residential Solutions segment's sales guidance estimates of to 1% to 3% net sales growth, with underlying sales up 4% to 6%.
For FY18, Emerson also raised its GAAP EPS guidance to $3.05 to $3.15 from the previous guidance of $2.66 to $2.86.
Stock Performance Snapshot
February 27, 2018 - At Tuesday's closing bell, Emerson Electric's stock marginally fell 0.60%, ending the trading session at $73.09.
Volume traded for the day: 3.44 million shares.
Stock performance in the last three-month - up 18.59%; previous six-month period - up 24.81%; past twelve-month period - up 20.95%; and year-to-date - up 4.88%
After yesterday's close, Emerson Electric's market cap was at $46.85 billion.
Price to Earnings (P/E) ratio was at 28.83.
The stock has a dividend yield of 2.65%.
The stock is part of the Industrial Goods sector, categorized under the Industrial Electrical Equipment industry.
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