Emerson Reports First Quarter 2024 Results; Updates 2024 Outlook

Rhea-AI Summary

Emerson (NYSE: EMR) reported strong first quarter results for fiscal 2024, with a 22% increase in net sales, a 56% growth in adjusted earnings per share, and a 47% rise in operating cash flow. The company also declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024. Emerson President and CEO, Lal Karsanbhai, highlighted the company's strong start to the year and updated its 2024 outlook, expecting significant growth in net sales and earnings per share.

Insights

Financial Analyst

Emerson's Q1 report highlights a substantial 22% increase in net sales and a 56% rise in adjusted earnings per share, signaling robust financial health and operational efficiency. This performance, particularly in Test & Measurement, suggests effective integration of acquisitions and strong market demand. The 47% growth in operating cash flow and 51% increase in free cash flow are indicative of a solid liquidity position, enabling strategic maneuvers such as share repurchases and dividend payments. The updated FY2024 guidance, with net sales growth projected between 14.5% and 17.0% and adjusted EPS of $5.30 - $5.45, reflects management's confidence in sustained growth and operational leverage.

However, the significant drop in GAAP earnings per share (55%) may raise concerns about non-operational factors affecting profitability. Investors should scrutinize the reasons behind this discrepancy, such as restructuring costs or acquisition-related expenses, which are excluded from adjusted EPS. The emphasis on returning approximately $1.7 billion to shareholders through repurchases and dividends is a strong signal of shareholder value prioritization, yet it also warrants a closer look at the company's capital allocation strategy to ensure long-term growth and competitiveness.

Market Research Analyst

Emerson's performance must be contextualized within the broader industrial automation and commercial & residential solutions sectors. The reported increase in underlying orders and sales suggests Emerson is capitalizing on the current demand for industrial automation solutions, which has been driven by trends such as increased focus on efficiency and the adoption of Industry 4.0 technologies. Emerson's strategic moves, such as the accelerated synergy plan in Test & Measurement, indicate an aggressive pursuit of market leadership in this segment.

Investors should consider the potential impact of global economic conditions, including currency fluctuations and trade dynamics, on Emerson's international operations. The reported figures exclude significant currency translation effects, which could either pose a risk or offer a benefit depending on future market conditions. Additionally, the company's focus on value creation through strategic acquisitions and divestitures should be monitored for its effectiveness in driving long-term competitive advantage and market share growth.

Economist

Emerson's update on fiscal year 2024 guidance, with a focus on operating cash flow and free cash flow, is a positive indicator of the company's economic fortitude. The projected figures suggest that Emerson is expecting to maintain or improve its efficiency in converting revenue into cash, an essential aspect for funding operations and future investments without excessive reliance on external financing.

However, the macroeconomic environment, including inflationary pressures and potential interest rate changes, could influence Emerson's cost structures and capital expenditure plans. The company's ability to maintain margins in such an environment, as indicated by an anticipated increase in adjusted segment EBITA margins, will be critical for investor confidence. The planned return of capital to shareholders, while beneficial in the short term, must be balanced against the need for reinvestment in innovation and expansion to secure long-term economic resilience.

ST. LOUIS, Feb. 7, 2024 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results¹ for its first quarter ended December 31, 2023 and updated its full year outlook for fiscal 2024. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024 to stockholders of record on February 16, 2024.

(dollars in millions, except per share)	2023 Q1	2024 Q1	Change
Underlying Orders2			4 %
Net Sales	$3,373	$4,117	22 %
Underlying Sales3			10 %
Pretax Earnings	$422	$139
Margin	12.5 %	3.4 %	(910) bps
Adjusted Segment EBITA4	$765	$1,014
Margin	22.7 %	24.6 %	190 bps
GAAP Earnings Per Share	$0.56	$0.25	(55) %
Adjusted Earnings Per Share5	$0.78	$1.22	56 %
Operating Cash Flow	$302	$444	47 %
Free Cash Flow	$243	$367	51 %

 

Management Commentary

"Emerson's first quarter results exceeded expectations in key financial metrics including underlying sales, operating leverage and adjusted earnings per share," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Our strong start to the year, continued focus on execution, and resilient process and hybrid demand provide the confidence to update our 2024 outlook."

Karsanbhai continued, "NI, now referred to as Test & Measurement, started the year strong delivering robust sales and margins. We have increased and accelerated our synergy plan in Test & Measurement and remain focused on creating value."

2024 Outlook

The following tables summarize the fiscal year 2024 guidance framework. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.

	2024 Q2	2024
Net Sales Growth	12.5% - 14.5%	14.5% - 17.0%
Underlying Sales Growth	3.5% - 5.5%	4.5% - 6.5%
Earnings Per Share	$0.68 - $0.72	$2.80 - $2.95
Amortization of Intangibles	~$0.35	~$1.42
Restructuring and Related Costs	~$0.09	~$0.34
Loss on Copeland Equity Method Investment	~$0.06	~$0.20
Amortization of Acquisition-related Inventory Step-up	---	$0.38
Acquisition / Divestiture Fees and Related Costs	~$0.04	~$0.26
Discrete Tax Benefits	---	($0.10)
Adjusted Earnings Per Share	$1.22 - $1.26	$5.30 - $5.45
Operating Cash Flow		$3.0B - $3.1B
Free Cash Flow		$2.6B - $2.7B

1	Results are presented on a continuing operations basis.
2	Underlying orders does not include AspenTech.
3	Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.
4	Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.
5	Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, the income/loss of Emerson's 40% share of Copeland, the amortization of acquisition-related inventory step-up, acquisition/divestiture fees and related costs, discrete tax benefits, an AspenTech Micromine purchase price hedge, and write-offs associated with Emerson's Russia exit.

 

Conference Call

Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the first quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/investors at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, www.Emerson.com/investors, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Investors:	Media:
Colleen Mettler	Joseph Sala / Greg Klassen
(314) 553-2197	Joele Frank, Wilkinson Brimmer Katcher
	(212) 355-4449

(tables attached)

 

			Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
	Quarter Ended Dec 31
	2022		2023
Net sales	$           3,373		$           4,117
Cost and expenses
Cost of sales	1,753		2,201
SG&A expenses	1,030		1,277
Other deductions, net	120		487
Interest expense, net	48		44
Interest income from related party1	—		(31)
Earnings from continuing operations before income taxes	422		139
Income taxes	98		7
Earnings from continuing operations	324		132
Discontinued operations, net of tax	2,002		—
Net earnings	2,326		132
Less: Noncontrolling interests in subsidiaries	(5)		(10)
Net earnings common stockholders	$           2,331		$              142
Earnings common stockholders
Earnings from continuing operations	$              329		$              142
Discontinued operations	2,002		—
Net earnings common stockholders	$           2,331		$              142
Diluted avg. shares outstanding	586.7		573.3
Diluted earnings per share common stockholders
Earnings from continuing operations	$             0.56		$             0.25
Discontinued operations	3.41		—
Diluted earnings per common share	$             3.97		$             0.25
	Quarter Ended Dec 31
	2022		2023
Other deductions, net
Amortization of intangibles	$              118		$              274
Restructuring costs	10		83
Other	(8)		130
Total	$              120		$              487
1 Represents interest on the Copeland note receivable

 

			Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
	Sept 30, 2023		Dec 31, 2023
Assets
Cash and equivalents	$           8,051		$           2,076
Receivables, net	2,518		2,759
Inventories	2,006		2,432
Other current assets	1,244		1,399
Total current assets	13,819		8,666
Property, plant & equipment, net	2,363		2,701
Goodwill	14,480		17,983
Other intangible assets	6,263		11,270
Copeland note receivable and equity investment	3,255		3,253
Other	2,566		2,640
Total assets	$         42,746		$         46,513
Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$              547		$           3,227
Accounts payable	1,275		1,234
Accrued expenses	3,210		3,304
Total current liabilities	5,032		7,765
Long-term debt	7,610		7,632
Other liabilities	3,506		4,561
Equity
Common stockholders' equity	20,689		20,674
Noncontrolling interests in subsidiaries	5,909		5,881
Total equity	26,598		26,555
Total liabilities and equity	$         42,746		$         46,513

 

				Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
	Three Months Ended Dec 31
		2022		2023
Operating activities
Net earnings		$            2,326		$              132
Earnings from discontinued operations, net of tax		(2,002)		—
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		260		422
Stock compensation		102		74
Amortization of acquisition-related inventory step-up		—		231
Changes in operating working capital		(289)		(247)
Other, net		(95)		(168)
Cash from continuing operations		302		444
Cash from discontinued operations		116		(29)
Cash provided by operating activities		418		415
Investing activities
Capital expenditures		(59)		(77)
Purchases of businesses, net of cash and equivalents acquired		—		(8,339)
Proceeds from subordinated interest		15		—
Other, net		(23)		(37)
Cash from continuing operations		(67)		(8,453)
Cash from discontinued operations		2,953		1
Cash provided by (used in) investing activities		2,886		(8,452)
Financing activities
Net increase (decrease) in short-term borrowings		(539)		2,647
Payments of long-term debt		(9)		—
Dividends paid		(306)		(300)
Purchases of common stock		(2,000)		(175)
AspenTech purchases of common stock		—		(72)
Other, net		(41)		(45)
Cash provided by (used in) financing activities		(2,895)		2,055
Effect of exchange rate changes on cash and equivalents		58		7
Increase (decrease) in cash and equivalents		467		(5,975)
Beginning cash and equivalents		1,804		8,051
Ending cash and equivalents		$            2,271		$           2,076

 

			Table 4
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

	Quarter Ended Dec 31
	2022		2023		Reported		Underlying
Sales
Final Control	$              862		$              940		9 %		9 %
Measurement & Analytical	749		947		26 %		28 %
Discrete Automation	618		613		(1) %		(2) %
Safety & Productivity	310		322		4 %		3 %
Intelligent Devices	$           2,539		$           2,822		11 %		11 %
Control Systems & Software	606		675		11 %		11 %
Test & Measurement	—		382		— %		— %
AspenTech	243		257		6 %		6 %
Software and Control	$              849		$           1,314		55 %		9 %
Eliminations	(15)		(19)
Total	$           3,373		$           4,117		22 %		10 %

 

Sales Growth by Geography
	Quarter Ended Dec 31
Americas	8 %
Europe	10 %
Asia, Middle East & Africa	15 %

 

			Table 4 cont.
	Quarter Ended Dec 31				Quarter Ended Dec 31
	2022				2023
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Final Control	$          158		$          184		$          194		$          223
Margins	18.4 %		21.4 %		20.6 %		23.6 %
Measurement & Analytical	175		181		235		258
Margins	23.4 %		24.1 %		24.9 %		27.3 %
Discrete Automation	121		129		97		116
Margins	19.6 %		21.0 %		15.8 %		18.9 %
Safety & Productivity	63		69		68		74
Margins	20.4 %		22.4 %		21.1 %		23.1 %
Intelligent Devices	$          517		$          563		$          594		$          671
Margins	20.4 %		22.2 %		21.0 %		23.8 %
Control Systems & Software	107		114		149		155
Margins	17.6 %		18.7 %		22.1 %		23.1 %
Test & Measurement	—		—		(78)		101
Margins	— %		— %		(20.4) %		26.5 %
AspenTech	(33)		88		(35)		87
Margins	(13.6) %		36.6 %		(13.7) %		33.6 %
Software and Control	$            74		$          202		$            36		$          343
Margins	8.7 %		23.8 %		2.8 %		26.1 %
Corporate items and interest expense, net:
Stock compensation	(102)		(102)		(74)		(44)
Unallocated pension and postretirement costs	45		45		31		31
Corporate and other	(64)		(44)		(399)		(38)
Loss on Copeland equity method investment	—		—		(36)		—
Interest expense, net	(48)		—		(44)		—
Interest income from related party1	—		—		31		—
Pretax Earnings / Adjusted EBITA	$          422		$          664		$          139		$          963
Margins	12.5 %		19.7 %		3.4 %		23.4 %
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA			$          765				$        1,014
Margins			22.7 %				24.6 %
1 Represents interest on the Copeland note receivable.

 

				Table 4 cont.
	Quarter Ended Dec 31				Quarter Ended Dec 31
	2022				2023
	Amortization of Intangibles1		Restructuring and Related Costs2		Amortization of Intangibles1		Restructuring and Related Costs2
Final Control	$                   22		$                     4		$                   22		$                     7
Measurement & Analytical	5		1		20		3
Discrete Automation	7		1		9		10
Safety & Productivity	6		—		6		—
Intelligent Devices	$                   40		$                     6		$                   57		$                   20
Control Systems & Software	6		1		5		1
Test & Measurement	—		—		139		40
AspenTech	121		—		122		—
Software and Control	$                 127		$                     1		$                 266		$                   41
Corporate	—		8		—		26	3
Total	$                 167		$                   15		$                 323		$                   87
1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended December 31, 2022 and 2023, respectively.
2 Restructuring and related costs includes $5 and $4 reported in cost of sales for the three months ended December 31, 2022 and 2023, respectively.
3 Corporate restructuring of $26 for the three months ended December 31, 2023 is comprised entirely of integration-related stock compensation expense attributable to NI.

 

	Quarter Ended Dec 31
Depreciation and Amortization	2022		2023
Final Control	$                45		$                40
Measurement & Analytical	30		40
Discrete Automation	21		22
Safety & Productivity	14		14
Intelligent Devices	110		116
Control Systems & Software	21		21
Test & Measurement	—		151
AspenTech	123		123
Software and Control	144		295
Corporate	6		11
Total	$              260		$              422

 

					Table 5
EMERSON AND SUBSIDIARIES ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL (DOLLARS IN MILLIONS, UNAUDITED)
The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.
					Quarter Ended Dec 31
					2022		2023
Stock compensation (GAAP)					$                (102)		$                  (74)
Integration-related stock compensation expense					—		30	1
Adjusted stock compensation (non-GAAP)					$                (102)		$                  (44)
					Quarter Ended Dec 31
					2022		2023
Corporate and other (GAAP)					$                  (64)		$                (399)
Corporate restructuring and related costs					8		—
Acquisition / divestiture costs					—		130
Amortization of acquisition-related inventory step-up					—		231
Russia business exit					47		—
AspenTech Micromine purchase price hedge					(35)		—
Adjusted corporate and other (non-GAAP)					$                  (44)		$                  (38)
1 Integration-related stock compensation expense relates to NI and includes $26 reported as restructuring costs.

 

			Table 6
EMERSON AND SUBSIDIARIES
ADJUSTED EBITA & EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

	Quarter Ended Dec 31
	2022		2023
Pretax earnings	$             422		$             139
Percent of sales	12.5 %		3.4 %
Interest expense, net	48		44
Interest income from related party1	—		(31)
Amortization of intangibles	167		323
Restructuring and related costs	15		87
Acquisition/divestiture fees and related costs	—		134
Amortization of acquisition-related inventory step-up	—		231
Loss on Copeland equity method investment	—		36
Russia business exit	47		—
AspenTech Micromine purchase price hedge	(35)		—
Adjusted EBITA	$             664		$             963
Percent of sales	19.7 %		23.4 %
	Quarter Ended Dec 31
	2022		2023
GAAP earnings from continuing operations per share	$            0.56		$            0.25
Amortization of intangibles	0.15		0.36
Restructuring and related costs	0.02		0.12
Acquisition/divestiture fees and related costs	—		0.17
Amortization of acquisition-related inventory step-up	—		0.38
Loss on Copeland equity method investment	—		0.04
Discrete taxes	—		(0.10)
Russia business exit	0.08		—
AspenTech Micromine purchase price hedge	(0.03)		—
Adjusted earnings from continuing operations per share	$            0.78		$            1.22
Less: AspenTech contribution to adjusted earnings per share			(0.07)
Adjusted earnings per share excluding AspenTech contribution			$            1.15
1 Represents interest on the Copeland note receivable

 

Table 6 cont.
Quarter Ended December 31, 2023
	Pretax Earnings		Income Taxes		Earnings from Cont. Ops.		Non-Controlling Interests3		Net Earnings Common Stockholders		Diluted Earnings Per Share
As reported (GAAP)	$         139		$             7		$         132		$         (10)		$            142		$        0.25
Amortization of intangibles	323	1	74		249		41		208		0.36
Restructuring and related costs	87	2	18		69		—		69		0.12
Acquisition/divestiture fees and related costs	134		38		96		—		96		0.17
Amortization of acquisition-related inventory step-up	231		14		217		—		217		0.38
Loss on Copeland equity method investment	36		9		27		—		27		0.04
Discrete taxes	—		57		(57)		—		(57)		(0.10)
Adjusted (non-GAAP)	$         950		$         217		$         733		$           31		$            702		$        1.22
Interest expense, net	44
Interest income from related party4	(31)
Adjusted EBITA (non-GAAP)	$         963
1 Amortization of intangibles includes $49 reported in cost of sales.
2 Restructuring and related costs includes $4 reported in cost of sales.
3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.
4 Represents interest on the Copeland note receivable.

 

Table 7

EMERSON AND SUBSIDIARIES

ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 57 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 43 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income and stock compensation.

Quarter Ended December 31, 2023
	Pretax Earnings		Income Taxes (Benefit)		Earnings from Cont. Ops.		Non-Controlling Interests4		Net Earnings Common Stockholders		Diluted Earnings Per Share
Standalone reporting (GAAP)	$         (37)	1	$         (15)		$         (22)
Other	(2)		—		(2)
Reported in Emerson consolidation (GAAP)	(39)		(15)		(24)		(10)		(14)		$      (0.02)
Adjustments:
Amortization of intangibles	122	2	27		95		41		54		0.09
Adjusted (Non-GAAP)	$           83		$           12		$           71		$           31		$             40		$        0.07
Interest income	(12)	3
Stock compensation	16	3
Adjusted segment EBITA (non-GAAP)	$           87
Reconciliation to Segment EBIT
Pre-tax earnings	$         (39)
Interest income	(12)	3
Stock compensation	16	3
Segment EBIT (GAAP)	$         (35)
Amortization of intangibles	122	2
Adjusted segment EBITA (non-GAAP)	$           87
1 Amount reflects AspenTech's pretax earnings for the three months ended December 31, 2023 as reported in its quarterly earnings release 8-K.
2 Amortization of intangibles includes $49 reported in cost of sales.
3 Reported in Emerson corporate line items.
4 Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

 

Reconciliations of Non-GAAP Financial Measures & Other						Table 8
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.

2024 Q1 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions)	Divestitures	Underlying
Final Control	9 %	(1) %	— %	1 %	9 %
Measurement & Analytical	26 %	— %	— %	2 %	28 %
Discrete Automation	(1) %	(1) %	— %	— %	(2) %
Safety & Productivity	4 %	(1) %	— %	— %	3 %
Intelligent Devices	11 %	(1) %	— %	1 %	11 %
Control Systems & Software	11 %	(1) %	— %	1 %	11 %
Test & Measurement	— %	— %	— %	— %	— %
AspenTech	6 %	— %	— %	— %	6 %
Software and Control	55 %	(1) %	(46) %	1 %	9 %
Emerson	22 %	(1) %	(12) %	1 %	10 %

 

Underlying Growth Guidance	2024 Q2 Guidance	2024 Guidance
Reported (GAAP)	12.5% - 14.5%	14.5% - 17%
(Favorable) / Unfavorable FX	~- pts	~- pts
(Acquisitions)	~(9) pts	(10.0) - (10.5) pts
Divestitures	~- pts	~- pts
Underlying (non-GAAP)	3.5% - 5.5%	4.5% - 6.5%

 

2023 Q1 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               158	18.4 %	$                 22	$                     4	$               184	21.4 %
Measurement & Analytical	175	23.4 %	5	1	181	24.1 %
Discrete Automation	121	19.6 %	7	1	129	21.0 %
Safety & Productivity	63	20.4 %	6	—	69	22.4 %
Intelligent Devices	$               517	20.4 %	$                 40	$                     6	$               563	22.2 %
Control Systems & Software	107	17.6 %	6	1	114	18.7 %
Test & Measurement	—	— %	—	—	—	— %
AspenTech	(33)	(13.6) %	121	—	88	36.6 %
Software and Control	$                 74	8.7 %	$               127	$                     1	$               202	23.8 %

 

2024 Q1 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of  Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               194	20.6 %	$                 22	$                     7	$               223	23.6 %
Measurement & Analytical	235	24.9 %	20	3	258	27.3 %
Discrete Automation	97	15.8 %	9	10	116	18.9 %
Safety & Productivity	68	21.1 %	6	—	74	23.1 %
Intelligent Devices	$               594	21.0 %	$                 57	$                  20	$               671	23.8 %
Control Systems & Software	149	22.1 %	5	1	155	23.1 %
Test & Measurement	(78)	(20.4) %	139	40	101	26.5 %
AspenTech	(35)	(13.7) %	122	—	87	33.6 %
Software and Control	$                 36	2.8 %	$               266	$                  41	$               343	26.1 %

 

Total Adjusted Segment EBITA		2023 Q1	2024 Q1
Pretax earnings (GAAP)		$                 422	$                 139
Margin		12.5 %	3.4 %
Corporate items and interest expense, net		169	491
Amortization of intangibles		167	323
Restructuring and related costs		7	61
Adjusted segment EBITA (non-GAAP)		$                 765	$              1,014
Margin		22.7 %	24.6 %

 

Free Cash Flow		2023 Q1	2024 Q1		2024E ($ in billions)
Operating cash flow (GAAP)		$                 302	$                 444		$3.0 - $3.1
Capital expenditures		(59)	(77)		~(0.4)
Free cash flow (non-GAAP)		$                 243	$                 367		$2.6 - $2.7

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2024E figures are approximate, except where range is given.

 

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SOURCE Emerson

FAQ

What are Emerson's (EMR) first quarter results for 2024?

Emerson reported a 22% increase in net sales, a 56% growth in adjusted earnings per share, and a 47% rise in operating cash flow for the first quarter of fiscal 2024.

What is the quarterly cash dividend declared by Emerson (EMR)?

Emerson declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024.

Who is the President and CEO of Emerson?

Lal Karsanbhai is the President and CEO of Emerson.

What is Emerson's (EMR) outlook for 2024?

Emerson expects significant growth in net sales and earnings per share for fiscal 2024.