Emerson Electric Co. (NYSE:EMR) saw its shares slide more than 5% on Wednesday after reporting mixed fiscal third-quarter results. While the company topped earnings expectations, revenue came in slightly below analyst forecasts, weighing on investor sentiment.
For the quarter ended June 30, Emerson posted adjusted earnings per share of $1.52, edging past the consensus estimate by a penny. However, revenue totaled $4.55 billion, falling short of the $4.61 billion projection, despite marking a 4% year-over-year increase.
“Emerson’s solid third quarter results reflect our sustained momentum, delivering strong underlying growth, profitability and cash flow, which we expect to continue as we finish the fiscal year,” said President and CEO Lal Karsanbhai.
Underlying sales rose 3% during the quarter, driven by 3% growth in the Intelligent Devices segment and a 2% increase in Software and Control. The company’s adjusted segment EBITA margin held steady at 27.1%, the same level as a year ago.
Looking ahead, Emerson updated its full-year 2025 forecast, now anticipating adjusted EPS of around $6.00—slightly above the analyst average of $5.99. For the fiscal fourth quarter, it expects earnings per share between $1.58 and $1.62, roughly in line with the $1.61 consensus.
Emerson also raised its full-year outlook for operating cash flow to approximately $3.6 billion and free cash flow to $3.2 billion.
Despite the upbeat earnings and improved guidance, the market reacted negatively to the revenue miss, sending the stock down 5.03% in post-announcement trading.
The company reaffirmed its capital return strategy for fiscal 2025, planning to return $2.3 billion to shareholders through $1.1 billion in share repurchases and $1.2 billion in dividends.
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