Emerson Electric Stock Tumbles After Solid Earnings. Here’s Why.

Emerson Electric expects full-year sales growth of 3.5%, down from a previous estimate of a 4% growth rate. (Dreamstime)

Emerson Electric stock was falling sharply Wednesday as the industrial automation company cut its annual sales growth forecast, overshadowing an otherwise solid earnings report.

Fiscal third-quarter adjusted earnings per share came in at $1.52, up 6% from the same period last year and above expectations of $1.51, according to analysts polled by FactSet.

Quarterly sales of $4.56 billion, up 4% from last year, were slightly below expectations $4.6 billion.

The company trimmed its sales growth forecast for the year to about 3.5%, down from a prior estimate of 4% growth. Emerson said the guidance reflects updated pricing expectations amid reduced cost exposure to tariffs.

It also tweaked its full-year profit guidance and now sees 2025 adjusted EPS of about $6, from a previous range of between $5.90 and $6.05 a share.

Shares were down 11% to $124.52 in morning trading Wednesday.

Write to Elsa Ohlen at elsa.ohlen@barrons.com