Boston, MA 08/06/2014 (wallstreetpr) – Emerson Electric Co.(NYSE:EMR) announced Q3 2014 results on August 5th, 2014. According to reports, it failed to meet the quarterly sales and profit expectations due to global economic slowdown. The spokesperson of EMR said,” The current quarter has been full of challenges for the global economy, but EMR will raise back during year end results announcements.”
Was it expected?:
As soon as the U.S. automation and power supply systems maker announced the financial results for Q3 2014, its shares went down by 1.4% to $63.07. EMR is not the only company that has faced a negative Q3 in terms of financial results; there are many other manufacturers whose shares have underperformed throughout Q3. A lot of such manufacturers had already announced their sluggish performance in the market; therefore market experts somehow expected that it was coming.
Leader’s Call on this performance:
When reporters got in touch with David Farr, Chief Executive Officer of EMR, he said,” We have been strong in terms of fundamentals, but rising geopolitical tension and existing economic challenges in some countries have hampered our growth in Q3.”
Financial Performance:
The profit of EMR increased by 27% and touched an eye-popping figure of $728 million or $1.03 per share from last year’s profit of $194 million. The average expectation made by Zacks Investment Research was for $1.06 per share. EMR posted total revenue of $6.31 billion which was less than the revenue ($6.34 billion) of Q3 2013. According to reports, Zacks Investment Research estimated total revenue of $6.46 billion for Q3 2014.
According to EMR,” The total earnings per share were 3 cents lower per share than the last year, and the main reason for it was difficult tax rate comparison.” The management of EMR expects that Emerson Electric Co.(NYSE:EMR) will bounce back in the Q4 2014 and recover all the losses occurred in the third quarter.
