Emerson Electric bumps up profit view on lower cost risk from tariffs, firm demand
FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid/File Photo
Engineering solutions provider Emerson Electric slightly raised its annual profit forecast on Wednesday, banking on reduced cost exposure to tariffs and higher demand for its intelligent devices segment.
However, its shares fell more than 7 per cent in premarket trading.
The company's intelligent devices business benefited from a rise in demand for its measurement and analytical components, as well as pressure-relief and safety-valve components.
Emerson now expects 2025 adjusted profit per share of $6, marginally higher than the midpoint of its prior range of $5.90 to $6.05.
"Net and underlying (2025) sales guidance of ~3.5 per cent growth reflects our updated expectations for pricing actions as the tariff expense exposure has reduced," the company said in a statement.
Revenue from the St. Louis, Missouri-based company's largest segment, intelligent devices, rose by 4 per cent to $3.13 billion in the quarter.
Emerson earned third-quarter profit of $1.52 per share on an adjusted basis, beating analysts' average estimate of $1.51 per share, according to data compiled by LSEG.
Quarterly net sales rose 4 per cent to $4.55 billion. Analysts were expecting revenue of $4.59 billion.
