EMR - Emerson posts quarterly earnings miss lifts full-year outlook

Emerson Electric ( NYSE: EMR ) -2.1% pre-market Wednesday after missing estimates for FQ1 adjusted earnings and revenues , although the company raised its sales and earnings forecasts for FY 2023.

Q4 profit increased by 2.5x to $2.33B, or $3.97/share, from $896M, $1.50/share, in the year-ago quarter, but earnings from continuing operations fell to $0.56/share from $1.25/share a year earlier, due in part to a 31% increase in the company's stock price during FQ1 that affected mark-to-market stock compensation plans.

Q4 revenues rose to $3.37B from $3.16B a year earlier, but came in slightly below analyst expectations.

Emerson ( EMR ) said it now expects FY 2023 adjusted earnings of $4.00-$4.15/share, in line with $4.09 analyst consensus estimate, while net sales are now forecast to rise 8%-10%, better than previous guidance for 7%-9% growth.

For Q2, Emerson ( EMR ) sees adjusted EPS of $0.95-$1.00, in line with $0.95 analyst consensus, with sales expected to increase 10.5%-12.5%.

"We continue to actively pursue opportunities to deploy capital effectively, including our proposal to acquire National Instruments for $53/share, a unique value creation opportunity for Emerson and NI shareholders," President and CEO Lal Karsanbhai said.

Emerson ( EMR ) shares have lost 5% so far this year and 4% during the past year .

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