NYSE$EMR

Emerson Electric Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Emerson's first quarter results for 2021 were reported, with revenue ahead of management's guidance and strong profitability driven by cost containment and restructuring actions.

Emerson reported flat net sales of $4.2 billion, but underlying sales were down 2 percent, ahead of guidance. GAAP EPS was $0.74, up 40 percent, and adjusted EPS was $0.83, up 24 percent. The company saw strong operating cash flow of $808 million, up 90 percent, and free cash flow of $686 million, up 121 percent.

  • GAAP net sales of $4.2 billion were flat year-over-year, while underlying sales decreased by 2 percent, exceeding management's November guidance.
  • GAAP EPS increased by 40 percent to $0.74, and adjusted EPS rose by 24 percent to $0.83.
  • Operating cash flow increased by 90 percent to $808 million, and free cash flow increased by 121 percent to $686 million.
  • Restructuring actions of $69 million were initiated to improve adjusted EBIT margins.

Headline financials

Total Revenue

$4.16B

Previous: $4.15B+0.2%
EPS (adj)

$0.83

Previous: $0.67+23.9%
Capital Expenditures

-$122M

Previous: -$114M-7.0%
Free Cash Flow

$323M

Previous: $212M+52.4%
Net Income

$445M

Previous: $326M+36.5%
Operating Income

-$3.5B

Previous: -$3.61B+3.0%
Gross Profit

$1.72B

Previous: $1.76B-2.0%
Cash & Equivalents

$2.2B

Previous: $1.64B+34.4%
Total Assets

$23.7B

Previous: $21.1B+12.2%
Stock-Based Comp

$64M

Previous: $56M+14.3%

Revenue & EPS history

Emerson · Revenue · Quarterly

$4.16B

Q1 2021+0.2%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Emerson · $3.15B total across 1 segment · Q4 2023

  • Intelligent Devices
    $3.15B

Forward guidance

Emerson expects a slow but steady improvement in industrial demand over the course of 2021, with robust residential demand. Underlying revenue is expected to be positive for the full year. Total company restructuring spend is planned at approximately $200 million for the full year. The guidance assumes no major operational or supply chain disruptions and oil prices in the $45 to $55 range.

Tailwinds

  • Net Sales Growth 4% - 8%
  • Automation Solutions 2% - 6%
  • Commercial & Residential Solutions 10% - 12%
  • GAAP EPS $3.39 +/- $.10
  • Adjusted EPS $3.70 +/- $.10

Headwinds

  • Underlying Sales Growth flat - 4%
  • Automation Solutions (3%) - 1%
  • Commercial & Residential Solutions 8% - 10%
  • Restructuring Actions ~$200M / M&A (excl. OSI)1
  • Tax Rate ~22%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+1.5%

Avg return

30 days after

40%

29 / 73 earnings

Positive

+15.5%

Q4 2024

Best reaction

-7.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+6.8%+4.3%+2.5%
Q1 2026-1.0%+5.2%-9.0%
Q4 2025-3.9%+2.1%+3.8%
Q3 2025-0.8%-0.7%-1.0%
Q2 2025+2.4%+11.3%+15.1%
Q1 2025-2.3%-0.7%-7.1%
Q4 2024+15.5%+15.9%+21.3%
Q3 2024-2.9%-4.4%-8.9%
Q2 2024+7.6%+6.9%+0.5%
Q1 2024+8.6%+10.6%+16.9%
Q4 2023-7.6%-5.7%-3.3%
Q3 2023+4.6%+6.1%+8.0%
Q2 2023+0.6%+1.9%+0.7%
Q1 2023-6.6%-4.7%-9.9%
Q4 2022-1.8%+2.8%+2.3%
Q3 2022-2.8%-0.9%-7.1%
Q2 2022-1.4%-6.7%-0.2%
Q1 2022+4.4%+3.5%-1.0%
Q4 2021-3.0%-2.4%-9.9%
Q3 2021-0.1%+0.0%+4.2%
Q2 2021+2.9%+4.7%+7.8%
Q1 2021+3.5%+6.5%+9.5%
Q4 2020+0.3%+3.2%+11.1%
Q3 2020+3.1%+5.7%+9.5%
Q2 2020+2.3%+5.7%+10.5%
Q1 2020+4.7%+1.6%-10.8%
Q4 2019+0.5%+0.9%+1.0%
Q3 2019+0.2%+0.1%+4.0%
Q2 2019-5.5%-4.6%-10.7%
Q1 2019-0.9%-1.3%-0.5%
Q4 2018-0.7%-2.6%-9.3%
Q3 2018+3.4%+3.1%+6.4%
Q2 2018+1.8%+3.0%+6.7%
Q1 2018+0.8%+0.9%+2.6%
Q4 2017-3.1%-4.5%+2.0%
Q3 2017+2.3%+2.6%-1.0%
Q2 2017-1.8%-2.4%-1.9%
Q1 2017+4.3%+5.7%-1.0%
Q4 2016-1.3%-2.5%+12.0%
Q3 2016-5.1%-3.8%-5.8%
Q2 2016-4.4%
Q1 2016+1.3%
Q4 2015+2.8%
Q3 2015-2.8%
Q2 2015-2.1%
Q1 2015-2.8%
Q4 2014-0.2%
Q3 2014-3.3%
Q2 2014-0.6%
Q1 2014-0.8%
Q4 2013+0.1%
Q3 2013-1.1%
Q2 2013-0.2%
Q1 2013-0.1%
Q4 2012-0.4%
Q3 2012+2.1%
Q2 2012-5.8%
Q1 2012-2.5%
Q4 2011-3.8%
Q3 2011-6.3%
Q2 2011-3.3%
Q1 2011-0.2%
Q4 2010+1.0%
Q3 2010-0.6%
Q2 2010-3.5%
Q1 2009-3.2%
Q1 2010+0.0%
Q4 2009+1.4%
Q2 2009+1.4%
Q3 2009-3.8%
Q3 2008-3.8%
Q4 2007-3.8%
Q4 2008-3.8%

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