Emerson Electric Set to Report Q4 Earnings Amid Automation Sector Momentum
Industrial automation and engineering giant Emerson Electric Co. (NYSE: EMR) will report its fiscal fourth-quarter earnings after the closing bell on Tuesday, providing a key read on demand trends across process manufacturing and commercial infrastructure markets.
The company enters this earnings period with mixed momentum. Last quarter, Emerson posted revenue of $4.86 billion, a 5.1% year-over-year increase but narrowly missing consensus estimates. More notably, it fell short on EBITDA and issued forward guidance that disappointed analysts. Over the past two years, the company has missed revenue expectations four times.
For the quarter ending September 2024, Wall Street anticipates revenue of approximately $4.35 billion, representing a 4.1% year-over-year gain—an acceleration from the 1.4% growth recorded in the year-ago period. Adjusted earnings are projected at $1.41 per share. Analyst estimates have remained largely unchanged over the past month, suggesting expectations are steady ahead of the print.
The broader electrical equipment and automation sector has shown resilience. Peer LSI recently reported in-line revenue but beat profit expectations, lifting its shares, while Viavi Solutions delivered a strong top-line beat. Sector stocks have risen an average of 5.1% over the past month, with Emerson shares gaining 3.4% during the same period. The average analyst price target for EMR stands at $155.95, above its recent price near $148.
Beyond the quarterly numbers, investors will focus on Emerson’s progress in integrating its software and automation portfolios, particularly in high-growth areas like digital transformation and sustainable infrastructure. The company’s recent strategic pivots toward hybrid and discrete automation markets could shape its long-term competitive positioning.
Market Voices:
“Emerson’s transition to a more software-centric model is progressing, but execution risks remain,” says David Chen, portfolio manager at Horizon Capital Advisors. “The guidance they provide for fiscal 2025 will be more important than the Q4 beat or miss.”
“Another quarter, another likely miss on the bottom line,” remarks Lisa Monroe, an independent industrial sector analyst known for her critical stance. “This management team keeps promising a software-driven turnaround, but the numbers keep telling a story of stagnation. Shareholders deserve clearer results, not just restructuring announcements.”
“The automation cycle is still intact, and Emerson is well-positioned in key verticals like life sciences and energy transition,” notes Raj Patel, senior research associate at MidWest Investment Trust. “Any pullback post-earnings could be a buying opportunity for long-term holders.”
“I’m watching their free cash flow generation closely,” adds Maria Gonzalez, a private investor focused on dividend growers. “Emerson’s dividend track record is solid, but it needs consistent operational performance to support future increases.”