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Why Did Emerson Electric Stock Rise after Its Fiscal 1Q17 Results?


Feb. 9 2017, Updated 12:38 p.m. ET

Earnings announcement

Emerson Electric (EMR) announced its fiscal 1Q17 earnings results for the quarter ended December 31, 2016, before market hours on February 7, 2017. In this series, we’ll analyze the company’s fiscal 1Q17 results, compare the results with analysts’ expectations, and analyze the factors that caused any deviation. We’ll also take a look at the management’s guidance and analyst expectations for 2017.

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Emerson Electric’s stock reaction

Emerson Electric (EMR) posted better-than-expected earnings for the quarter ended December 31, 2016. The company’s adjusted EPS (earnings per share) came in at $0.49 against analysts’ consensus EPS estimate of $0.42.

Emerson Electric stock rose nearly 4% during the intraday trading session on February 7, 2017. Emerson Electric’s better-than-expected fiscal 1Q17 results, an upward revision of its fiscal 2017 guidance, and expected improvement in the demand conditions of automation markets helped the stock to close on a high note.

Peer performance

On the day of EMR’s earning release, its peers Rockwell Automation (ROK) and AMETEK (AME) closed nearly flat. Also, Honeywell International (HON) closed nearly unchanged during the intraday trading session on February 7.

The broader industrial market, tracked by the Industrial Select Sector SPDR ETF (XLI), closed at $63.82 compared to its previous day’s closing price of $63.71. In contrast, the SPDR S&P 500 ETF (SPY) closed nearly unchanged.

Next, let’s see how EMR’s operating segments contributed to its top line growth in fiscal 1Q17.


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