Emerson Electric Q3 Earnings Disappoint, CarMax Upgraded by JPMorgan, Perrigo Sales Miss Estimates.

Emerson Electric's Q3 results fell short of expectations, with underlying sales below Wall Street estimates. Carmax was upgraded to Neutral from Underweight by JPMorgan, with a lower price target of $58. Perrigo's net sales and earnings missed expectations, but the company reaffirmed its FY2025 outlook and highlighted its Project Energize cost-saving plan.

Emerson Electric (EMR) reported its Q3 2025 earnings, which fell short of Wall Street's expectations. The company's revenue of $4,553 million missed the estimated $4,597.68 million, while its adjusted EPS of $1.52 exceeded the estimated $1.14, reflecting a 6% growth [2].

Despite the revenue miss, Emerson Electric's pretax earnings increased significantly to $734 million, enhancing the margin to 16.1%, up by 570 basis points. The company's operating cash flow was reported at $1,062 million, and free cash flow decreased by 1% to $970 million [2].

Emerson's President and CEO, Lal Karsanbhai, stated, "Emerson's solid third quarter results reflect our sustained momentum, delivering strong underlying growth, profitability, and cash flow, which we expect to continue as we finish the fiscal year." The company's strategic focus on industrial automation, which is vital for enhancing productivity and reducing operational risks, has been highlighted [2].

Looking ahead, Emerson Electric's updated fiscal 2025 outlook projects a GAAP EPS of ~$4.08 and an adjusted EPS of ~$6.00, with expectations for operating cash flow and free cash flow to increase to ~$3.6 billion and ~$3.2 billion, respectively [2].

References:
[1] https://finance.yahoo.com/news/emerson-electric-nyse-emr-misses-112119874.html
[2] https://www.gurufocus.com/news/3039276/emerson-electric-co-q3-2025-earnings-adjusted-eps-of-152-beats-estimates-revenue-falls-short-at-4553-million