Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Emerson Electric raises fiscal 2023 outlook on strong demand

Published 05/03/2023, 08:07 AM
Updated 05/03/2023, 08:11 AM
© Reuters. FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid/File Photo

(Reuters) - U.S. engineering and industrial software firm Emerson (NYSE:EMR) Electric Co on Wednesday raised its fiscal 2023 outlook and reported better-than-expected quarterly earnings, on the back of strong demand for its automation systems in a tight labor market.

Shares of the company were up 2.1% in premarket trading.

The firm has benefited from companies worldwide looking to automate their assembly lines to help meet rising demand for goods amid a shortage of workers.

Emerson now expects fiscal 2023 net sales growth between 9% and 10.5%, up from its previous guidance of between 8% and 10%. It also expects adjusted earnings per share to be between $4.15 and $4.25, up from the previous forecast of $4.00 to $4.15.

The St. Louis, Missouri-based company has been streamlining its operations over the past few years, including executing a string of deals, to capitalize on upbeat demand for industrial automation.

"Emerson's outstanding second-quarter results were driven by strong end-market demand," CEO Lal Karsanbhai said.

The industrial conglomerate reported adjusted earnings per share, excluding the contribution from Emerson's software units merged with Aspen Technology (NASDAQ:AZPN), of $1.05 per share for the quarter ended March 31, beating analysts' expectation of 97 cents per share.

Revenue for the quarter was $3.75 billion, compared with analysts' expectation of $3.65 billion.

Separately, Emerson said on Wednesday vice president Mike Baughman has been promoted to chief financial officer effective May 10, succeeding Frank Dellaquila who will be retiring.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.