Emerson beats quarterly profit estimates on strong industrial components demand

(Reuters) - Engineering solutions provider Emerson topped first-quarter profit estimates on Wednesday, fueled by resilient demand in its valves and regulators unit.

 

Demand for Emerson’s industrial components has surged as companies increase their energy and power investments.

 

Sales in Emerson’s final control unit, which makes valves, regulators and actuators, rose about 4% to $976 million in the reported quarter.

 

On an adjusted basis, the company earned $1.38 per share in the first quarter ended Dec. 31, compared with analysts’ estimate of $1.28 per share, according to data compiled by LSEG.

 

"We reiterate our guide for underlying sales, earnings per share and cash-flow-driven by resilient demand in process and hybrid markets, expected second half discrete recovery and our proven ability to execute," CEO Lal Karsanbhai said.

 

Emerson had earlier forecast 2025 per-share adjusted profit to be in the $5.85 to $6.05 range.

 

Its quarterly revenue rose 1% to $4.18 billion but missed analysts’ average estimate of $4.23 billion, hurt by a slowdown in demand for its automation technology.

 

(Reporting by Nathan Gomes and Rupali Chaudhary in Bengaluru; Editing by Pooja Desai)