Research Desk Line-up: EnerSys Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Emerson Electric Co. (NYSE: EMR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EMR, following the Company's release of its third quarter fiscal 2017 results on August 01, 2017. The maker of process controls systems, valves, and analytical instruments met earnings estimates for the reported quarter and also increased its earnings guidance for the fiscal year 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Industrial Electrical Equipment industry. Pro-TD has currently selected EnerSys (NYSE: ENS) for due-diligence and potential coverage as the Company announced on August 09, 2017, its financial results for Q1 FY18 which ended on July 02, 2017. Register for a free membership today, and be among the early birds that get access to our report on EnerSys when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on EMR; also brushing on ENS. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=EMR

http://protraderdaily.com/optin/?symbol=ENS

Earnings Reviewed

In the third quarter ended June 30, 2017, Emerson announced that net sales were up 10% to $4.04 billion compared to net sales of $3.67 billion in Q3 FY16, with underlying sales up 4% on a y-o-y basis, excluding unfavorable currency of 1% and an impact from acquisitions of 7%. Emerson stated that the reported quarter results reflected a return to growth for the Company as its platforms delivered net and underlying sales growth and had high single-digit order rates in the quarter.

During Q3 FY17, Emerson's pretax margin of 15.4% and EBIT margin of 16.3% decreased 240 and 280 basis points, respectively; driven by dilution from the Valves & Controls acquisition. Excluding Valves & Controls, the Company's total segment margin increased 80 basis points to 20.9%.

For Q3 FY17, Emerson reported net earnings of $413 million, or $0.63 per diluted share, compared to net earnings of $479 million, or $0.68 per share, in Q3 FY16. The Company's adjusted earnings per share were $0.68 flat compared to the prior year, excluding a $0.04 impact from Valves & Controls first year acquisition accounting charges related to inventory and backlog amortization, and a $0.01 impact from Valves & Controls ongoing operations, including intangibles amortization and restructuring charges.

Business Platform Results

During Q3 FY17, Emerson's Automation Solutions net sales increased 12% to $2.44 billion compared to sales of $2.18 billion in Q3 FY16, with underlying sales up 2% excluding unfavorable currency of 1% and the impact from acquisitions of 11%, driven by favorable trends in energy related, hybrid, and general industrial markets.

The segment's North American underlying sales grew 6% on a y-o-y basis led by energy related markets. Growth in Canada reflected renewed activity in unconventional oil and gas, particularly in Western Canada. Automation Solutions' Asia's underlying sales were up 6%, with China up by 13% supported by momentum across the base business and robust demand in discrete markets. Europe was down 5%; Latin America dropped 17%; and Middle-East/Africa declined 2% on a y-o-y basis. The segment's margin decreased 70 basis points to 15.5%. Excluding the dilutive impact of the Valves & Controls acquisition, margin increased 170 basis points to 17.9%.

For Q3 FY17, Emerson's Commercial & Residential Solutions net and underlying sales increased 7% to $1.60 billion, reflecting strong demand, particularly in the Americas and Asia. The segment's underlying sales in North America grew 6% on a y-o-y basis, led by continued strength in air conditioning and refrigeration markets, and solid demand for professional tools in oil and gas and construction related markets. Commercial & Residential Solutions' sales in Asia grew 17%, driven by robust growth in China's refrigeration, heating, and air conditioning markets. Latin America sales grew 7%; Europe added 1% and Middle-East/Africa fell 6%. Commercial & Residential Solutions' margin decreased 50 basis points to 25.1%.

2017 Outlook

Emerson's FY17 net sales are expected to be up by approximately 5%, with underlying sales up 1% excluding an impact from acquisitions of 4%. The Company's Automation Solutions net sales are expected to increase in the range of 4% to 5%, with underlying sales down 1% to 2% excluding an impact from acquisitions of 6%. Commercial & Residential Solutions net and underlying sales are expected to be up 5% to 6%.

Emerson raised its FY17 earnings per share guidance based on strong operational performance and favorable order trends. Reported (GAAP) earnings per share from continuing operations are expected to be $2.48 to $2.52. The Company's adjusted earnings per share from continuing operations are expected to be $2.58 to $2.62.

Stock Performance

At the closing bell, on Monday, August 14, 2017, Emerson Electric's stock climbed 1.26%, ending the trading session at $59.63. A total volume of 2.07 million shares have exchanged hands. The Company's stock price surged 2.21% in the last three months and 10.49% in the previous twelve months. Moreover, the stock gained 6.96% since the start of the year. The stock is trading at a PE ratio of 23.65 and has a dividend yield of 3.22%. The stock currently has a market cap of $38.33 billion.

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SOURCE: Pro-Trader Daily