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Dec 31, 2022

Emerson Q1 2023 Earnings Report

Reported first quarter 2023 results and updated 2023 outlook.

Key Takeaways

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.

Total Revenue
$3.37B
Previous year: $4.47B
-24.6%
EPS
$0.78
Previous year: $1.05
-25.7%
Gross Profit
$1.62B
Previous year: $1.82B
-11.1%
Cash and Equivalents
$2.27B
Previous year: $4.73B
-51.9%
Free Cash Flow
$243M
Previous year: $407M
-40.3%
Total Assets
$36.2B
Previous year: $27B
+34.4%

Emerson

Emerson

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.

Positive Outlook

  • 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

Challenges Ahead

  • 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)