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Dec 31, 2021

Emerson Q1 2022 Earnings Report

Reported strong demand and increased full year outlook.

Key Takeaways

Emerson reported strong first quarter results with net sales up 8% and GAAP EPS up 103%. The company updated its 2022 full year outlook to reflect continued strong demand.

Demand continued to be strong with December Trailing Three-Month Underlying Orders up 17 percent

Net Sales were $4.5 billion, up 8 percent from the year prior; Underlying Sales were up 8 percent

GAAP EPS was $1.50, up 103 percent from the year prior; Adjusted EPS was $1.05, up 13 percent

Updated 2022 Full Year Outlook to reflect continued strong demand

Total Revenue
$4.47B
Previous year: $4.16B
+7.5%
EPS
$1.05
Previous year: $0.83
+26.5%
Total Backlog
$6B
Previous year: $5.3B
+13.2%
Gross Profit
$1.82B
Previous year: $1.72B
+5.7%
Cash and Equivalents
$4.73B
Previous year: $2.2B
+115.1%
Free Cash Flow
$407M
Previous year: $686M
-40.7%
Total Assets
$27B
Previous year: $23.7B
+13.9%

Emerson

Emerson

Emerson Revenue by Segment

Forward Guidance

Emerson increased its 2022 full year outlook. Net and Underlying Sales guidance is increased by 1 percent to 6 to 8 percent and 7 to 9 percent, respectively. Adjusted Earnings Per Share have been increased to $4.90 to $5.05.

Positive Outlook

  • Net Sales Growth 6% - 8%
  • Underlying Sales Growth 7% - 9%
  • Automation Solutions Underlying Sales Growth 7% - 9%
  • Commercial & Residential Solutions Underlying Sales Growth 9% - 11%
  • Adjusted EPS $4.90 - $5.05

Challenges Ahead

  • Ongoing supply chain constraints
  • Challenges related to the COVID-19 pandemic
  • Restructuring Actions $150M
  • Capital Spend $650M
  • Price-Cost $175M

Revenue & Expenses

Visualization of income flow from segment revenue to net income