Company Performance - Emerson Electric (EMR) closed at $99.57, with a daily increase of +0.91%, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Emerson Electric's shares declined by 12.21%, underperforming the Industrial Products sector's loss of 10.03% and the S&P 500's loss of 6.3% [2] Earnings Projections - Emerson Electric is set to release its earnings on May 7, 2025, with projected EPS of $1.42, indicating a 4.41% increase year-over-year [3] - The consensus estimate for revenue is $4.38 billion, reflecting a 0.1% rise from the same quarter last year [3] - For the entire fiscal year, earnings are projected at $5.93 per share and revenue at $17.79 billion, representing increases of +8.01% and +1.73% respectively from the prior year [4] Analyst Estimates and Valuation - Recent changes in analyst estimates for Emerson Electric are crucial as they indicate shifts in near-term business trends [5] - The Zacks Rank system, which evaluates estimate changes, currently rates Emerson Electric at 3 (Hold) [7] - Emerson Electric has a Forward P/E ratio of 16.63, which is lower than the industry average of 17.86, suggesting it is trading at a discount [8] Industry Context - Emerson Electric has a PEG ratio of 1.96, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.62 [9] - The Manufacturing - Electronics industry is ranked 35 in the Zacks Industry Rank, placing it in the top 15% of over 250 industries [10]

Emerson Electric Co. (EMR) is benefiting from solid momentum across the Intelligent Devices and Software and Control segments. Within the Intelligent Devices segment, strength in the Final Control business, driven by solid momentum in power end markets, is driving the company’s performance. Sales from this business increased 4% year over year in the first quarter of fiscal 2025 (ended December 2024).Robust growth in all geographies and strong backlog conversion levels are aiding the Measurement & Analytical ...

Core Insights - Emerson's annual NI Connect conference will take place from April 28-30, 2025, in Fort Worth, Texas, focusing on advancements in test and measurement technology [1][2] - The event will feature keynote presentations, live demonstrations, and educational sessions aimed at showcasing how integrated hardware and software approaches can enhance product testing and development [3][4] Event Details - The conference will gather engineers, researchers, and business leaders to discuss the future of test and measurement, including NI's Intelligent Test vision and advancements in platforms like NI LabVIEW, NI DAQ, and NI PXI [2][4] - Registration includes access to all sessions, certified training, meals, exhibitions, and social events [6] Keynote Speakers and Topics - Archer Aviation will discuss the use of NI's hardware-in-the-loop simulation platforms for validating their eVTOL aircraft, Midnight [7] - Milwaukee Tool will showcase their transformation of test automation for 24/7 tool life testing [7] - Qualcomm will present on standardizing NI's PXI-based test platforms for scalable validation of RF and PMIC devices [7] - The University of Texas will share insights on their student-led rocket engineering projects utilizing LabVIEW [7] Additional Highlights - Keynote presentations will feature leaders from Fortune 500 companies sharing success stories on how NI's test tools provide a strategic advantage [8] - New product announcements for NI DAQ, LabVIEW, and PXI will be made during the conference [8] - Networking opportunities will be available for attendees to engage with industry experts and explore best practices in advanced test and measurement [8]

Company Overview - Emerson Electric Co. is a diversified global engineering and technology company headquartered in St. Louis, MO, offering a wide range of products and services across consumer, commercial, and industrial markets [11]. - The company features a diverse portfolio of brands including Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, ASCO, Greenlee, Klauke, AMS, and DeltaV [11]. Investment Ratings - Emerson Electric is currently rated as a 2 (Buy) on the Zacks Rank, indicating a positive outlook for the stock [11]. - The company has a VGM Score of B, suggesting it has attractive value, growth, and momentum characteristics [11][12]. Growth Potential - Emerson Electric is positioned as a top pick for growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 8.7% for the current fiscal year [12]. - In the last 60 days, seven analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.06 to $5.97 per share [12]. - The company has demonstrated an average earnings surprise of 4.3%, indicating a strong performance relative to expectations [12].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Emerson Electric (EMR), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4][12]. Brokerage Recommendations - Emerson Electric has an average brokerage recommendation (ABR) of 1.65, indicating a consensus between Strong Buy and Buy, based on recommendations from 24 brokerage firms [2]. - Out of the 24 recommendations, 17 are Strong Buy and 1 is Buy, which accounts for 70.8% and 4.2% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential [4]. - Analysts from brokerage firms often exhibit a positive bias due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Zacks Rank as an Alternative - The Zacks Rank, a proprietary stock rating tool, categorizes stocks into five groups based on earnings estimate revisions, which are strongly correlated with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11]. Current Earnings Estimates for Emerson Electric - The Zacks Consensus Estimate for Emerson Electric has increased by 0.2% over the past month to $5.97, reflecting analysts' growing optimism about the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Emerson Electric, suggesting a positive outlook for the stock [13].

Company Overview - Emerson Electric Co. is a diversified global engineering and technology company headquartered in St. Louis, MO, offering a wide range of products and services across consumer, commercial, and industrial markets [11] - The company features a diverse portfolio of brands including Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, ASCO, Greenlee, Klauke, AMS, and DeltaV [11] Investment Ratings - Emerson Electric is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [11] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 8.7% for the current fiscal year [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.03 to $5.97 per share [12] - Emerson Electric has an average earnings surprise of 4.3%, suggesting a positive trend in earnings performance [12]

Group 1: Acquisition Details - Emerson Electric Co. has acquired all outstanding shares of Aspen Technology, Inc., increasing its ownership from 57% to 100% [1][3] - The acquisition was structured as an all-cash tender offer, valuing AspenTech at a market capitalization of $17.0 billion and an enterprise value of $16.8 billion, with Emerson offering $265 in cash for each remaining share [3] Group 2: Strategic Rationale - The acquisition aligns with Emerson's strategy to enhance operations and expand market presence, boosting its automation portfolio and enabling entry into new markets [4] - AspenTech's asset optimization software solutions will advance Emerson's capabilities in software-defined control under industrial automation [4] Group 3: Existing Business Performance - Emerson is experiencing healthy demand across most end markets, with sales in the process and hybrid industries up 2% in the first quarter of fiscal 2025, and expected to grow mid-single digits driven by energy, LNG, and power markets [5] - The Intelligent Devices and Software and Control segments are performing strongly, with sales in the Final Control business increasing 4% year over year in the fiscal first quarter [6] - The Measurement & Analytical business saw sales rise 3% year over year in the fiscal first quarter, supported by robust growth across geographies [7] Group 4: Challenges - There is softness in the Americas and Europe regions within the Safety & Productivity business, with sales in the Discrete Automation business declining 5% in the first quarter of fiscal 2025 [8] - Emerson operates in a highly competitive market, facing competition from companies like Ingersoll Rand plc, Rockwell Automation, and Franklin Electric Co., Inc. [9]

Core Points - Emerson has completed the acquisition of all outstanding shares of Aspen Technology, Inc. not already owned by Emerson, marking a significant milestone in Emerson's portfolio transformation [1][2] - AspenTech is now a wholly owned subsidiary of Emerson, with plans to enhance offerings and drive shareholder value [2] - Antonio Pietri will retire as CEO of AspenTech, with Vincent M. Servello appointed as the new President of the AspenTech business unit [3] Acquisition Details - Emerson's tender offer for AspenTech shares was priced at $265.00 per share in cash, which expired on March 11, 2025, with approximately 72% of the outstanding shares validly tendered [5][6] - Following the tender offer, Emerson completed the acquisition through a merger on March 12, 2025, and AspenTech shareholders who did not tender their shares are entitled to receive $265.00 per share [6] - AspenTech's shares have ceased trading on NASDAQ following the completion of the acquisition [6] Leadership Changes - Vincent M. Servello, who has been with Emerson since 2014, will lead AspenTech, bringing expertise in industrial technology and corporate strategy [3] - David Baker will continue as CFO of the AspenTech business unit [3] Integration into Emerson - AspenTech will operate as an independent business unit within Emerson, with its results consolidated into the Control Systems & Software segment [4]

Core Viewpoint - Emerson has extended its tender offer to acquire all outstanding shares of Aspen Technology, Inc. until 5:00 p.m. Eastern Time on March 11, 2025, to accommodate share settlement due to an index change [1][2]. Group 1: Tender Offer Details - The tender offer is for all outstanding shares of AspenTech not already owned by Emerson at a price of $265 per share, which is stated as Emerson's best and final price [3]. - As of March 7, 2025, approximately 6,715,211 shares had been validly tendered and not withdrawn [3]. - The tender offer remains subject to the satisfaction of specified conditions [2]. Group 2: Index Change Impact - The extension of the tender offer is related to AspenTech's replacement in the S&P MidCap 400 index, effective prior to the opening of trading on March 11, 2025 [1]. Group 3: Information and Resources - Equiniti Trust Company, LLC is the depository and paying agent for the tender offer, while Innisfree M&A Incorporated acts as the information agent [4]. - Additional information regarding the tender offer can be found in the Tender Offer Statement filed with the SEC [8][10].

Core Viewpoint - Emerson Electric's recent earnings report showed mixed results, with adjusted earnings per share exceeding estimates but net sales falling short, leading to a decline in share price over the past month [1][2][3]. Financial Performance - Adjusted earnings for Q1 fiscal 2025 were $1.38 per share, surpassing the Zacks Consensus Estimate of $1.28, marking a 13.1% increase year over year [2]. - Net sales reached $4.18 billion, slightly below the consensus estimate of $4.21 billion, with a year-over-year increase of 1% [3]. - Underlying sales grew by 2% year over year [3]. Segment Performance - The Intelligent Devices segment reported net sales of $2.84 billion, a 0.7% increase year over year, though it fell short of the estimated $2.88 billion [4]. - Within this segment, Final Control sales rose 3.8% to $976 million, Measurement & Analytical sales increased 3% to $975 million, while Discrete Automation sales declined 5.4% to $580 million, and Safety & Productivity sales decreased 3.1% to $312 million [5]. - The Software and Control Automation Solutions segment generated net sales of $1.35 billion, up 2.9% year over year, slightly exceeding the estimate of $1.34 billion [6]. Margin and Cost Analysis - The cost of sales decreased by 11.9% year over year to $1.9 billion, contributing to a pretax earnings margin of 18.6%, up from 4.2% in the previous year [7]. - Adjusted EBITA margin improved to 28% from 24.6% year over year, while selling, general, and administrative expenses fell by 4.2% to $1.2 billion [7]. Balance Sheet and Cash Flow - At the end of Q1 fiscal 2025, cash and cash equivalents stood at $2.8 billion, down from $3.6 billion at the end of fiscal 2024, while long-term debt decreased to $6.6 billion from $7.2 billion [8]. - The company generated net cash of $777 million from operating activities, an increase of 87.2% year over year, with capital expenditures rising to $83 million [9]. Future Outlook - For Q2 fiscal 2025, Emerson anticipates net sales growth between -0.5% and 0.5%, with underlying sales growth expected to be in the range of 1-2% [11]. - The company projects full fiscal year net sales growth of 1.5-3.5%, a reduction from the previous estimate of 3.5-5.5% [12]. - Earnings per share for the fiscal year are expected to be in the range of $4.42-$4.62, with adjusted earnings per share remaining unchanged at $5.85-$6.05 [13]. Market Sentiment - Recent estimates for Emerson Electric have shown a downward trend, indicating a potential shift in market sentiment [14][16]. - The company currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the coming months [16].