8 months ago
Emerson Electric bumps up profit view on lower cost risk from tariffs, firm demand
(Reuters) -Engineering solutions provider Emerson (NYSE:EMR) Electric slightly raised its annual profit forecast on Wednesday, banking on reduced cost exposure to tariffs and higher demand for its intelligent devices segment.
However, its shares fell more than 7% in premarket trading.
The company’s intelligent devices business benefited from a rise in demand for its measurement and analytical components, as well as pressure-relief and safety-valve components.
Emerson now expects 2025 adjusted profit per share of $6, marginally higher than the midpoint of its prior range of $5.90 to $6.05.
"Net and underlying (2025) sales guidance of ~3.5% growth reflects our updated expectations for pricing actions as the tariff expense exposure has reduced," the company said in a statement.
Revenue from the St. Louis, Missouri-based company’s largest segment, intelligent devices, rose by 4% to $3.13 billion in the quarter.
Emerson earned third-quarter profit of $1.52 per share on an adjusted basis, beating analysts’ average estimate of $1.51 per share, according to data compiled by LSEG.
Quarterly net sales rose 4% to $4.55 billion. Analysts were expecting revenue of $4.59 billion.
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