On Tuesday, February 02, Emerson Electric EMR will release its latest earnings report. Benzinga's outlook for Emerson Electric is included in the following report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Emerson Electric EPS will likely be near $0.68 while revenue will be around $3.98 billion, according to analysts. Emerson Electric reported a per-share profit of $0.67 when it published results during the same quarter last year. Sales in that period totaled $4.15 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 1.49%. Sales would be down 4.12% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.94 | 0.6 | 0.74 | 0.67 |
| EPS Actual | 1.10 | 0.8 | 0.89 | 0.67 |
| Revenue Estimate | 4.46 B | 3.85 B | 4.31 B | 4.15 B |
| Revenue Actual | 4.56 B | 3.91 B | 4.16 B | 4.15 B |
Stock Performance
Over the last 52-week period, shares are up 8.89%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. Emerson Electric is scheduled to hold the call at 15:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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