Emerson raises fiscal 2023 forecast on demand for industrial automation

Emerson raises fiscal 2023 forecast on demand for industrial automation

Technology

Emerson raises fiscal 2023 forecast on demand for industrial automation

(Reuters) - U.S. engineering and industrial software firm Emerson (EMR.N) on Wednesday raised its fiscal 2023 forecast, as companies increase spending on automation in response to a tight labor market.

The company's shares rose 3.9% in premarket trading.

Companies across North America are working towards automating their factories to enhance efficiency and streamline operations amid a shortage of workers following the pandemic.

Emerson now expects its fiscal 2023 adjusted profit from continuing operations between $4.40 and $4.45 per share, up from its previous outlook of $4.15 to $4.25 per share.

The company also expects its 2023 revenue to grow about 10.5%, at the higher end of the 9%-to-10.5% growth it forecast earlier.

The St. Louis, Missouri-based company has been on a streamlining spree over the past few years, including executing a string of deals, to cash in on strong demand for industrial automation.

The company's results were helped in the recent quarters by "strategic benefits of its exposure to attractive-end-markets," CEO Lal Karsanbhai said on Tuesday.

The industrial conglomerate reported adjusted earnings per share of $1.29 for the quarter through June, beating analysts' average estimates of $1.10 per share.

Net sales for the quarter came in at $3.95 billion, above a Wall Street consensus figure of $3.88 billion.