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Sep 30, 2021
Emerson Q4 2021 Earnings Report
Emerson's fourth quarter net sales increased by 9% and underlying sales increased by 7%.
Key Takeaways
Emerson reported strong orders demand with Trailing Three-Month Orders up 16%. Fourth quarter Net Sales were $4.9 billion up 9 percent from the year prior despite an estimated $175 million impact due to supply chain, logistics and labor constraints. Fourth quarter GAAP EPS was $1.11, down 8 percent from the year prior; Adjusted EPS, which excludes restructuring and first year purchase accounting charges, was $1.21, up 10 percent.
Trailing Three-Month Orders were up 16%.
Net Sales were $4.9 billion, up 9 percent.
GAAP EPS was $1.11, down 8 percent.
Adjusted EPS was $1.21, up 10 percent.
Forward Guidance
Emerson expects that 2022 will be characterized by strong underlying demand. Strength in discrete and hybrid automation markets, further recovery in process markets and expanding opportunities in sustainability projects is expected to drive Automation Solutions full year net sales and underlying sales growth to mid-to-high single digits. For Commercial & Residential Solutions, residential demand is expected to moderate while the commercial and industrial environment is expected to further improve, driving net sales and underlying sales growth to mid-to-high single digits.
Positive Outlook
- Strength in discrete and hybrid automation markets
- Further recovery in process markets
- Expanding opportunities in sustainability projects
- Price-cost will turn to a tailwind during the second half
- Automation Solutions full year net sales and underlying sales growth to mid-to-high single digits
Challenges Ahead
- Operational challenges to continue through the first half of the year
- Residential demand is expected to moderate
Historical Earnings Impact
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Avg. Return Before/After Earnings
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