EMR Exceeds Q1 Earnings Expectations
Emerson Electric (NYSE: EMR) reported its Q1 EPS at $0.56, versus the consensus expectation of $0.42. EMR’s revenues for the quarter came at $5 billion as compared to the Street view of $4.69 billion. The results reflected a year-over-year decline of 7% in both sales and diluted earnings per share.
EMR’s Chairman, CEO and President David N Farr said, “Considering the continuing economic pressures, this was a solid quarter and an encouraging start for 2010. Our margin improvement demonstrates that we are doing the right things to drive global best cost and increase shareholder value. To successfully manage through the uncertain economic conditions that remain in most of our markets, we are focused on accelerating new product programs, investing in emerging markets, and making strategic acquisitions in our core and adjacent markets. This is positioning us for sustainable sales and profit improvements as global economic conditions improve.”
Emerson Electric's gross profit margins expanded 110bps to 38% for the quarter. EMR has projected its earnings for FY10 at $2.20-$2.40 per share, exceeding the consensus expectation of $2.11 by a wide margin.
