EMERSON ELECTRIC Announces Record Earnings for FY2023 Q3
August 24, 2023
🌥️Earnings Overview
EMERSON ELECTRIC ($NYSE:EMR) reported its earnings for the third quarter of FY2023 which ran through June 30 2023 on August 2. A total revenue of USD 3946.0 million was reported, a decrease of 21.2% when compared to the same period the previous year. Additionally, net income was USD 9352.0 million compared to just USD 921.0 million from the same quarter last year.
Share Price
The company stock opened at $98.5 and closed at $95.1, up by 3.8% from previous closing price of 91.6. The strong performance of the company was attributed to its focus on innovation and customer service. Furthermore, EMERSON ELECTRIC‘s robust portfolio of products and services has helped it stay ahead of the competition in its sector. The company has also implemented operational efficiency measures that have resulted in significant cost savings.
This has allowed the company to invest more in research and development activities, which have further improved its product offerings. Overall, investors have been pleased with EMERSON ELECTRIC’s performance and have expressed confidence in the company’s outlook for the future. With increased demand for its products and services, EMERSON ELECTRIC is likely to continue its strong growth trajectory in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Emerson Electric. More…
| Total Revenues | Net Income | Net Margin |
| 20.79k | 13.21k | 14.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Emerson Electric. More…
| Operations | Investing | Financing |
| 2.5k | 12.74k | -7.81k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Emerson Electric. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 44.17k | 17.76k | 35.81 |
Key Ratios Snapshot
Some of the financial key ratios for Emerson Electric are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 11.8% | 20.9% |
| FCF Margin | ROE | ROA |
| 9.5% | 17.1% | 6.2% |
Analysis
At GoodWhale, we analyzed EMERSON ELECTRIC‘s fundamental metrics and found the company to be strong in dividend and profitability, and medium in asset and growth. Based on our Star Chart, we classified EMERSON ELECTRIC as a “gorilla”, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes EMERSON ELECTRIC an attractive investment for different types of investors, from long-term value investors to growth investors. Moreover, with a health score of 9/10 considering its cashflows and debt, EMERSON ELECTRIC is capable of paying off debt and funding future operations. This further adds to the attractiveness of the company for potential investors. More…
Peers
The company has been in business for over 120 years and has a strong reputation in the industry. Emerson Electric Co’s main competitors are CSW Industrials Inc, Ofuna Technology Co Ltd, and Nabtesco Corp.
– CSW Industrials Inc ($NASDAQ:CSWI)
CSW Industrials Inc is a diversified industrial growth company. It operates through three segments: Construction Products Group, Specialty Chemicals Group, and Engineered Products Group. The Construction Products Group manufactures and sells adhesives, sealants, and coatings for the commercial construction, industrial maintenance, and repair industries under the brand names CSW, Tremco, Polyset, RLS, and Sealant Equipment. The Specialty Chemicals Group manufactures and sells specialty chemicals under the brand names Belclene, VCI, and Inland. The Engineered Products Group manufactures and sells engineered products and solutions under the brand names Morse, Lovejoy, and Will-Burt.
– Ofuna Technology Co Ltd ($TPEX:4577)
Funatech is a Japanese company that develops and sells video game software. As of March 2022, its market capitalization was 1.66 billion dollars, and its return on equity was 11.7%. The company was founded in 1995 and its headquarters are in Tokyo. Funatech’s products include the “FunaPaint” digital painting software and the “FunaPuzzle” puzzle game series.
– Nabtesco Corp ($TSE:6268)
Nabtesco Corporation is a Japanese manufacturer of precision machinery products. The company’s products include gears, brakes, clutches, and other components for automobiles, aircraft, construction and mining machinery, and industrial equipment. Nabtesco is also involved in the development and production of wind power generation systems. The company was founded in 1919 and is headquartered in Tokyo, Japan.
Summary
Investing in Emerson Electric can be a profitable move in the long run. The company reported strong financial results for the third quarter of FY2023, with total revenue declining by 21.2% year-over-year, yet net income increased significantly to USD 9352.0 million, compared to the prior year’s 921.0 million. As a result, the stock price rose on the same day.
Emerson Electric is financially sound, and with a well-diversified portfolio of products and services, it could be a great addition to any investor’s portfolio. Furthermore, it has a strong balance sheet and is able to generate consistent profits each quarter, making it an attractive investment option.
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