Emerson Q2 2024 Earnings Report
Key Takeaways
Emerson reported strong Q2 2024 results, with sales growth, margin expansion, and earnings all exceeding expectations. The company has updated its full year 2024 outlook with confidence due to strong performance and relentless focus on execution.
Sales growth, margin expansion, and earnings exceeded expectations.
Underlying orders met low-single-digit growth expectations, supported by process and hybrid end markets.
Gross margin performance demonstrates the strength of the transformed portfolio and Emerson Management System.
Full year 2024 outlook was updated.
Emerson
Emerson
Forward Guidance
Emerson updated its full year outlook for fiscal 2024. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.
Positive Outlook
- Net Sales Growth 15% - 16%
- Underlying Sales Growth 5.5% - 6.5%
- Earnings Per Share $2.98 - $3.08
- Adjusted Earnings Per Share $5.40 - $5.50
- Free Cash Flow ~$2.7B
Challenges Ahead
- Amortization of Intangibles ~$1.43
- Restructuring and Related Costs ~$0.32
- Loss on Copeland Equity Method Investment ~$0.19
- Amortization of Acquisition-related Inventory Step-up $0.38
- Acquisition / Divestiture Fees and Related Costs ~$0.23