By Will Feuer
Emerson Electric Co. is set to report its first-quarter earnings Wednesday before the market opens. Here’s what you need to know:
FORECAST: The St. Louis-based manufacturer is expected to report revenue of $4.47 billion for the quarter ended Dec. 31, up from $4.16 billion in the year-ago period, according to analysts polled by FactSet.
Analysts surveyed by FactSet expect Emerson Electric to post adjusted earnings per share of 99 cents, up from 83 cents a year earlier.
WHAT TO WATCH:
–COSTS CRAZE: Emerson Electric has seen its costs swell in recent quarters, and investors will be watching closely to see if that trend continues or offers any signs of abating. In the company’s fiscal fourth quarter, cost of sales jumped more than 10% from a year earlier. And in the third quarter, the company warned of higher material costs creating a challenging environment.
–SUPPLY-CHAIN WOES: In addition to higher material costs, Emerson, like companies in various other industries, is also contending with a snarled global supply chain. The company warned last quarter about near-term supply chain disruptions across its business units, and investors will be keeping a close eye on commentary around when the company expects those challenges to ease.
Write to Will Feuer at [email protected]
