Emerson Electric raises annual profit forecast on automation services demand

May 7 (Reuters) - Emerson Electric EMR.N raised its full-year profit forecast on Wednesday on the back of strong demand for its automation services and products that also helped the company report second-quarter earnings ahead of Wall Street estimates.

The engineering services firm's shares jumped more than 3% in premarket trading.

Demand for industrial components and automation services has been driven by investments across sectors including chemicals, energy transition and mining.

"First-half performance and ability to navigate the tariff environment give us the confidence to update our 2025 outlook," Emerson CEO Lal Karsanbhai said.

The company now expects full-year adjusted earnings per share between $5.90 and $6.05, compared with its prior forecast range of $5.85 to $6.05.

Analysts are expecting an annual profit of $5.91 per share, according to data compiled by LSEG.

Emerson also raised its forecast for net sales to grow about 4% from its prior expectation of an increase of 1.5% to 3.5%.

On an adjusted basis, the company earned $1.48 per share in the second quarter, beating estimates of $1.41. Net sales of $4.43 billion also beat expectations of $4.38 billion.

Smaller peer Rockwell Automation ROK.N also hiked its full-year earnings forecast, citing strong demand for its products. Its shares jumped more than 8%.