Emerson Electric Slashes FY25 Sales Growth Outlook, But Backs EPS, Adj. EPS Outlook - Update

Emerson Electric

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(RTTNews) - While reporting financial results for the first quarter on Wednesday, technology and software company Emerson Electric Co. (EMR) provided financial guidance for the second quarter, below analysts' expectations. The company also slashed its sales growth outlook for the full-year 2025, while maintaining earnings, adjusted earnings and underlying sales growth forecasts.

For the second quarter, the company expects earnings in a range of $1.01 to $1.05 per share and adjusted earnings in a range of $1.38 to $1.42 per share on sales between a decline of 0.5 percent and a 0.5 percent growth, with underlying sales growth of 1 to 2 percent.

On average, analysts polled expect the company to report earnings of $1.45 per share on revenue growth of 2.7 percent to $4.49 billion for the quarter. Analysts' estimates usually exclude special items.

Looking ahead to fiscal 2025, the company continues to project earnings in the range of $4.42 to $4.62 per share and adjusted earnings in the range of $5.85 to $6.05 per share on underlying sales growth of 3 to 5 percent.

However, the company now expects net sales growth of 1.5 to 3.5 percent, down from the prior forecast for a 3.5 to 5.5 percent growth.

The Street is looking for earnings of $5.93 per share on revenue growth of 4.06 percent to $18.20 billion for the year.

Emerson also declared a quarterly cash dividend of $0.5275 per share of common stock, payable March 10, 2025 to stockholders of record on February 14, 2025.

The company said the 2025 outlook does not include any impact from the recently announced portfolio transactions6 related to AspenTech and Safety & Productivity.

However, the outlook assumes returning approximately $3.2 billion to shareholders through approximately $2.0 billion of share repurchases and approximately $1.2 billion of dividend payments.

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