street. LOUIS – Emerson Electric Company (NYSE: NYSE:) reported stronger-than-expected second-quarter performance, with adjusted earnings per share (EPS) and revenue beating analysts' expectations. EMR shares rose 0.9% in pre-market trading.
The company reported second-quarter adjusted EPS of $1.36, which beat analysts' estimates of $1.25. Revenue also beat expectations, coming in at $4.38 billion versus the consensus estimate of $4.29 billion, representing a significant increase from the prior year.
Emerson's strong results were driven by sales growth, margin expansion and earnings that beat expectations, according to Emerson President and CEO Lal Karsanbhai. The company's focus on execution and transformed portfolio contributed to this strong quarter, as did its ability to deliver differentiated solutions to clients.
The company's guidance for Q3 2024 expects an adjusted EPS range of $1.38 to $1.42, slightly below the analyst consensus of $1.44. The expected net sales growth for this quarter ranges between 11% and 12.5%.
For the second quarter, Emerson also declared a quarterly cash dividend of $0.525 per common share, payable June 10, 2024, to shareholders of record as of May 17, 2024.
Looking ahead, the company has updated its full-year outlook for fiscal 2024, reflecting its confidence in continued strong performance. Emerson's second-quarter success, particularly in gross margin performance, underscores the strength of the company's portfolio and management system, leaving it well-positioned to create future value for its shareholders.
The company's full-year forecast for 2024 includes expected net sales growth of 15% to 16% and an adjusted EPS range of $5.40 to $5.50. This guidance assumes approximately $500 million will be returned to shareholders through share repurchases and approximately $1.2 billion in dividend payments.
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