Skip to Content
Global News Select

Emerson 4Q Sales Fell But Beat Expectations

By Maitane Sardon

Emerson Electric Co. posted a rise in net profit for the fourth quarter and better-than-expected revenue.

The manufacturer on Tuesday posted net earnings of $723 million, or $1.20 a share, compared with $717 million, or $1.16 a share, in the year-ago period.

Excluding items, it reported an adjusted profit of $1.10 a share.

Analysts polled by FactSet were expecting earnings of 89 cents a share, or 95 cents a share on an adjusted basis.

Sales fell 8% to $4.6 billion from $4.97 billion in the year-ago period. Analysts were looking for $4.46 billion.

The company said the sales were in line with management guidance, with sales in its automation solutions finishing at the low end of expectations and the commercial and residential solutions segment finishing above its expectations. It said it continued to anticipate demand challenges most acute in the North American market.

Emerson said it expects overall revenue to return to growth in the third quarter of 2021 with net sales growth of between 1% and 4% in 2021.

It added it intends to resume share repurchases in fiscal year 2021 in the amount of $500 million to $1 billion.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

November 03, 2020 07:40 ET (12:40 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.