Emerson Electric’s 3Q16 earnings release
Emerson Electric (EMR) released its fiscal 3Q16 earnings after the Market opened on August 2, 2016. Emerson is a diversified industrial (IYJ) conglomerate that makes a variety of electrical and electronic products.
Emerson’s 3Q16 earnings relate to its operating performance in the quarter ended June 30, 2016. The earnings release resulted in a negative price action of 4.9%, and the stock closed at $53.03 on the day of the release.
In 3Q16, Emerson Electric’s diluted EPS (earnings per share) fell 4.8% year-over-year to $0.80. It missed Wall Street analyst estimates by $0.04. The major contributor to the decline was the sales decline of 7%. This offset benefits from a 20-basis-point improvement in operating margins and a 3.5% lower share count.
On the recent quarterly performance call, David Farr, chair and CEO (chief executive officer) of Emerson, said, “Our businesses executed in a quarter characterized by unpredictable economic conditions, especially in the North American oil and gas markets.”
Farr added, “Operational execution as well as the benefits from our restructuring activities resulted in improved margins in three of our five segments in the quarter, two of which were achieved despite lower volumes. And while the overall results were below expectations, I am extremely proud of our employees across all of our businesses who are driving Emerson forward and undertaking significant business repositioning actions in this difficult environment.”