- Emerson's (NYSE:EMR) adjusted EPS rose 24% Y/Y to $0.83 in FQ1, exceeding expectations by $0.15 and driving the stock up 3.4% in premarket trade.
- Revenue by segment: Automation Solutions +6%; Commercial & Residential Solutions +13%.
- Operating cash flow of $808M, up 90%; Free cash flow of $686M, up 121%.
- Restructuring and related actions of $69M were initiated in the quarter, continuing "aggressive execution of the comprehensive cost reset program to return the company to record adjusted EBIT margins."
- Raised guidance for 2021: Adjusted EPS of ~$3.75 (+/- $.10), compared to ~$3.45 previously, on net sales growth of 4% to 8% (vs. a prior forecast of 1% to 4%).
- "As macroeconomic uncertainties related to COVID-19 begin to slowly wane, we continue to expect a slow-but-steady improvement in industrial demand over the course of 2021 as more vaccines become available and distribution methods mature. We also expect that residential demand for many of our markets around the world will remain robust through the year," the company said in a press release. "Within this framework, we now expect underlying revenue to be positive for the full year. However, due to the delayed recovery timeline in many key automation markets, especially in North America, we remain committed to our plan of total company restructuring spend of approximately $200M for the full year. Lastly, the updated guidance assumes no major operational or supply chain disruptions and oil prices in the $45 to $55 range for the remainder of the year."