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Jun 30, 2022
Emerson Q3 2022 Earnings Report
Reported third quarter results and updated 2022 outlook.
Key Takeaways
Emerson reported a 7% increase in net sales to $5.0 billion and a 48% increase in GAAP EPS to $1.54. The company updated its full year outlook for fiscal 2022, reflecting the impacts of the AspenTech and Therm-O-Disc transactions.
June trailing three-month underlying orders up 10 percent.
Net sales were $5.0 billion, up 7 percent from the year prior; underlying sales were up 7 percent.
GAAP EPS was $1.54, up 48 percent from the year prior; adjusted EPS was $1.38, up 16 percent, including an $0.08 net AspenTech impact.
Updated 2022 full year outlook and now includes impact of the AspenTech transaction
Forward Guidance
Emerson updated its 2022 full year outlook to reflect the impacts of the AspenTech and Therm-O-Disc transactions, and write-offs associated with its announced Russia exit while considering continued macroeconomic and geopolitical uncertainty, supply chain constraints, exchange rate fluctuations and challenges related to COVID-19.
Positive Outlook
- Net sales guidance is reduced to 7 to 8 percent
- Underlying sales guidance is narrowed to 9 to 10 percent.
- Earnings per share guidance is increased to $5.25 to $5.35
- Adjusted earnings per share guidance is increased to $5.05 to $5.15
- Free cash flow is now expected to be $2.5 billion.
Challenges Ahead
- Operating cash flow is now expected to be $3.0 billion due to higher working capital from increased sales and continued supply chain constraints.
- Capital spending was reduced to approximately $525 million.
- Share repurchase is expected to be approximately $500 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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