Dividend-News
Daily dividend news for investors in dividend stocks
Dividend Growth Gem Emerson Electric Cuts Revenue Outlook
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Published Thu, 28 Jun 2012 02:17:35 -0400 on Seeking Alpha
On Tuesday, Dividend Growth portfolio holding Emerson Electric (EMR) cut its fiscal year 2012 fourth-quarter outlook for revenue by $120 million due to unfavorable foreign exchange fluctuations. However, the firm reiterated its full-year earnings guidance of $3.35-$3.50 per share, and noted that orders for the last three months advanced 3% on a constant currency basis, though orders were down 2% compared to the same period a year ago on an absolute basis. This underscores several revisions we've seen in other industries exposed to foreign exchange rates. As the dollar strengthens against the Yen and the Euro, revenue and earnings estimates come down. However, we do not think this significantly impacts a firm's long-term valuation as firms tend to do an adequate job adjusting operations to manage cash flow and earnings, which Emerson is doing. Regardless, we think shares are fairly valued at current levels, but we think the company is... Read more
Stock name ISIN Last trade P/E Earnings/Share Dividend/Share Dividend yield EMERSON ELECTRIC 
US2910111044 59.36 20.5 2.83 1.64 2.76