NYSE$EMR

Emerson Electric Co · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter 2023 results and updated 2023 outlook.

Emerson reported a 7% increase in net sales to $3.4 billion, with underlying sales up 6%. GAAP EPS was $0.56, and adjusted EPS was $0.78, which included a $0.09 unfavorable impact from stock compensation. The company completed $2 billion of share repurchases and updated its full-year net sales and GAAP EPS outlook.

  • Net sales were $3.4 billion, up 7 percent from the year prior; underlying sales were up 6 percent.
  • GAAP EPS was $0.56; adjusted EPS was $0.78, including $0.09 unfavorable impact from stock compensation.
  • Completed $2 billion of share repurchase in the first quarter.
  • Updated 2023 full year net sales and GAAP EPS outlook; maintained underlying sales and adjusted EPS outlook despite stock compensation headwind.

Headline financials

Total Revenue

$3.37B

Previous: $4.47B-24.6%
EPS (adj)

$0.78

Previous: $1.05-25.7%
Capital Expenditures

-$59M

Previous: -$116M+49.1%
Free Cash Flow

$2.27B

Previous: $780M+191.3%
Net Income

$2.33B

Previous: $896M+160.2%
Operating Income

-$2.79B

Previous: -$3.67B+24.0%
Gross Profit

$1.62B

Previous: $1.82B-11.1%
Cash & Equivalents

$2.27B

Previous: $4.73B-51.9%
Total Assets

$36.2B

Previous: $27B+34.4%
Stock-Based Comp

$102M

Previous: $34M+200.0%

Revenue & EPS history

Emerson · Revenue · Quarterly

$3.37B

Q1 2023-24.6%vs Q1 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Emerson · $2.54B total across 1 segment · Q1 2023

  • Intelligent Devices
    $2.54B

Forward guidance

Emerson updated its full year net sales and GAAP EPS outlook but maintained its underlying sales and adjusted EPS outlook despite stock compensation headwinds.

Tailwinds

  • Net Sales Growth: 8% - 10%
  • Underlying Sales Growth: 6.5% - 8.5%
  • Earnings Per Share: $3.55 - $3.70
  • Adjusted Earnings Per Share: $4.00 - $4.15
  • Returned $2 billion to shareholders through share repurchases completed in the first quarter and approximately $1.2 billion of dividend payments

Headwinds

  • Amortization of Intangibles: ~$0.60
  • Restructuring / Related Costs: ~$0.12
  • Russia Exit Costs: $0.08
  • AspenTech Micromine Purchase Price Hedge: ~($0.03)
  • Interest on Note Receivable From Climate Technologies: ~($0.09)

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 2023

Historical avgQ1 2023

-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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