NYSE$EMR

Emerson Electric Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter results and raised 2021 outlook.

Emerson reported strong second quarter results with net sales up 6 percent and EPS up 11 percent. The company also raised its 2021 outlook, expecting continued improvement in industrial and commercial demand.

  • Q2 Net Sales of $4.4 billion, up 6 percent from the year prior.
  • Q2 EPS was $0.93, up 11 percent from the year prior.
  • Operating Cash Flow of $807 million, up 37 percent.
  • Free Cash Flow (FCF) was $707 million, up 48 percent.

Headline financials

Total Revenue

$4.43B

Previous: $4.16B+6.5%
EPS (adj)

$0.97

Previous: $0.89+9.0%
Capital Expenditures

-$222M

Previous: -$225M+1.3%
Free Cash Flow

$339M

Previous: $292M+16.1%
Net Income

$561M

Previous: $517M+8.5%
Operating Income

-$3.64B

Previous: -$3.43B-6.2%
Gross Profit

$1.86B

Previous: $1.75B+6.4%
Cash & Equivalents

$2.34B

Previous: $2.58B-9.3%
Total Assets

$23.8B

Previous: $21.7B+9.6%
Stock-Based Comp

$61M

Previous: -$38M+260.5%

Revenue & EPS history

Emerson · Revenue · Quarterly

$4.43B

Q2 2021+6.5%vs Q2 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 overall continued improvement in industrial and commercial demand over the remainder of 2021. Residential demand will remain robust, but begin to taper in the second half.

Tailwinds

  • Net Sales Growth 6% - 9%
  • Automation Solutions 3% - 5%
  • Commercial & Residential Solutions 14% - 16%
  • Underlying Sales Growth 3% - 6%
  • Commercial & Residential Solutions 12% - 14%

Headwinds

  • Capital Spend ~$600M
  • Share Repurchase / M&A (excl. OSI) $500M - $1.0B
  • Tax Rate ~22%
  • Restructuring Actions ~$200M
  • GAAP EPS $3.60 +/- $.05

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 Q2 2021

Historical avgQ2 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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