Q3 2024 Emerson Electric Co Earnings Call Transcript
Key Points
- Emerson Electric Co (EMR) reported a 3% year-over-year increase in orders, driven by strong project activity in Process and Hybrid businesses.
- The company achieved a gross margin of 52.8% in Q3, a 230 basis point improvement from the prior year.
- Adjusted earnings per share exceeded expectations at $1.43, up 11% from 2023.
- Free cash flow was robust at $975 million, up 27% year-over-year, with a free cash flow margin of 22.3% for the quarter.
- Emerson Electric Co (EMR) raised its free cash flow guidance to approximately $2.8 billion for the full year.
- Discrete Automation orders were softer than expected, down low single digits both year-over-year and sequentially.
- Test & Measurement orders remained soft, down 11%, with weaker demand in China across most business segments.
- Sales came in at the low end of guidance due to weaker orders, particularly in Test & Measurement.
- The European market was softer than expected amid lingering EV demand concerns.
- MRO orders were slightly softer than expected in the quarter.
Good day, and welcome to the Emerson third quarter 2024 earnings conference call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Ms. Colleen Mettler, Vice President of Investor Relations at. Ms. Mettler, the floor is yours, ma'am.
Good morning, and thank you for joining us for Emerson's third quarter 2024 earnings conference call. This morning, I am joined by; President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Mike Baughman; and Chief Operating Officer, Ram Krishnan.
As always I encourage everyone to follow along with the slide presentation, which is available on our website. Please join me on Slide 2. This presentation may include forward-looking statements, which contain a degree of business risk and uncertainty. Please take time
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