All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, ...

To build wealth over time, investors should learn the crucial role dividend stocks play in a well-rounded portfolio. These stocks provide stability when markets get rocky, while putting cash directly into your brokerage account. This is money that can be used to either reinvest or supplement your income. Thus, when it comes to dividends, I focus on the creme de la creme: “Dividend Aristocrats.” These stocks have increased their payouts yearly for at least 25 consecutive years. Talk about reliability!By rein ...

ST. LOUIS, Jan. 17, 2024 /PRNewswire/ -- Emerson (NYSE: EMR) will report its first quarter results prior to market open on Wednesday, Feb. 7, 2024. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 9 a.m. Eastern Time, 8 a.m. Central Time. All interested parties may listen to the live conference call and view presentation slides, which will be posted in advance of the call, by going to the Investors area of Emerson's website at www.Emerson.com/ ...

In the latest market close, Emerson Electric (EMR) reached $94.87, with a +0.07% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.The maker of process controls systems, valves and analytical instruments's stock has dropped by 1.8% in the past month, falling short of the Industrial Products sector's gain of 4.54% and the S&P 500's gain of 3. ...

Award recognizes Emerson's software and technology innovation helping global companies achieve optimal performanceST. LOUIS, Jan. 11, 2024 /PRNewswire/ -- Global technology and software leader Emerson (NYSE: EMR) has been named the IoT Breakthrough "Industrial IoT Company of the Year" for the sixth year. The 2024 award recognizes Emerson's advances in sustainability-enabling technologies and software, efforts to accelerate the development and delivery of life-saving drugs, and the company's industry-leading ...

Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Emerson Electric (EMR) or Eaton (ETN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by ...

Financial Performance - Net sales increased from $12.932 billion in 2021 to $15.165 billion in 2023, representing a growth of 17.3% over the two years[171] - Basic earnings per share rose significantly from $3.85 in 2021 to $23.00 in 2023, driven by a substantial increase in discontinued operations earnings[171] - Net earnings for common stockholders surged from $2.303 billion in 2021 to $13.219 billion in 2023, primarily due to a sharp rise in discontinued operations earnings[171] - Cash and equivalents increased dramatically from $1.804 billion in 2022 to $8.051 billion in 2023, reflecting strong liquidity growth[174] - Total current assets grew from $8.506 billion in 2022 to $13.819 billion in 2023, indicating a 62.5% increase in liquid assets[174] - Long-term debt decreased from $8.259 billion in 2022 to $7.610 billion in 2023, showing a reduction in long-term liabilities[176] - Retained earnings expanded from $28.053 billion in 2022 to $40.070 billion in 2023, reflecting strong profitability and reinvestment[177] - Total equity increased from $16.316 billion in 2022 to $26.598 billion in 2023, demonstrating significant growth in shareholder value[177] - Comprehensive income for common stockholders grew from $2.618 billion in 2022 to $13.451 billion in 2023, driven by strong earnings and other comprehensive income[172] - Net earnings increased significantly from $2,327 million in 2021 to $13,200 million in 2023, driven by strong performance in continuing operations[183] - Total pretax earnings increased from $2,432 in 2022 to $2,726 in 2023[281] - Effective income tax rate decreased from 22.6% in 2022 to 22.0% in 2023[283] - Net deferred income tax liability decreased from $(1,859) in 2022 to $(1,629) in 2023[290] - Total income taxes paid in 2023 were approximately $3,310, including $2.3 billion related to gains on the Copeland transaction and InSinkErator divestiture[291] Backlog and Revenue Recognition - The company's consolidated order backlog was $7.8 billion at September 30, 2023, up from $7.0 billion in 2022, with $1.2 billion related to AspenTech[26] - Approximately 75% of the backlog is expected to be recognized as revenue over the next 12 months[26] - The Intelligent Devices segment backlog increased to $4.47 billion in 2023 from $3.93 billion in 2022[26] - The Software and Control segment backlog grew to $3.30 billion in 2023 from $3.06 billion in 2022[26] - Revenue recognition over time accounts for approximately 10% of total revenues, primarily in the Control Systems & Software segment[201] - The company uses an input method to determine progress and recognize revenue for projects where revenue is recognized over time, based on costs incurred[202] - As of September 30, 2023, the company's backlog relating to unsatisfied performance obligations was approximately $7.8 billion, with $1.2 billion related to AspenTech[213] - The company expects to recognize approximately 75% of its remaining performance obligations as revenue over the next 12 months[213] - Revenue recognized for 2023 included approximately $534 million from the beginning contract liability balance[212] Acquisitions and Divestitures - The company engages in acquisitions and divestitures, such as the acquisition of National Instruments and the divestiture of a majority stake in Copeland, with potential integration challenges[44] - The company retains a 40% non-controlling equity interest in Copeland, with future value dependent on Copeland's business performance[45] - On May 16, 2022, the company completed the acquisition of AspenTech, contributing $6.0 billion in cash and two industrial software businesses, resulting in a 55% ownership stake in the new entity[215] - The total purchase consideration for AspenTech was $11,188 million, with goodwill of $7,225 million and other intangible assets of $4,390 million[217][219] - In 2023, the company acquired Flexim and Afag for $705 million, recognizing goodwill of $429 million and other identifiable intangible assets of $314 million[224] - On August 1, 2023, AspenTech terminated the agreement to acquire Micromine due to unclear Russian regulatory approval timelines[225] - On March 31, 2023, the company divested its Russia-based subsidiary Metran, recognizing a pretax loss of $47 million[226] - In 2022, the company acquired three businesses for $130 million, with combined annual sales of approximately $40 million[226] - The Company completed the sale of its Climate Technologies business to Blackstone for $14.0 billion, receiving $9.7 billion in upfront cash proceeds and retaining a 40% non-controlling equity interest in the new joint venture named Copeland[228][229] - The Climate Technologies business had 2022 net sales of $5.0 billion and pretax earnings of $1.0 billion, with the Company recognizing a pretax gain of approximately $10.6 billion ($8.4 billion after-tax) from the transaction[229] - The Company divested its InSinkErator business to Whirlpool Corporation for $3.0 billion, recognizing a pretax gain of approximately $2.8 billion ($2.1 billion after-tax) in Q1 2023[231] - The Company divested its Therm-O-Disc business, recognizing a pretax gain of $486 million ($429 million after-tax) in Q3 2022[231] - Cash from investing activities for 2023 reflects proceeds of approximately $9.7 billion from the Copeland transaction and $3.0 billion from the InSinkErator divestiture[234] Research and Development - Total R&D spending in 2023 was 6.9% of sales, up from 6.3% in 2022[21] - The company's success depends on the acceptance of new and improved products and services, with challenges in research, development, and market introduction[40][41] Employee and Workforce Metrics - Employee engagement score in 2023 was 78%, with over 85% participation in the survey[31] - Total recordable rate of injuries in 2023 was 0.30 per 100 employees, and lost or restricted workday case rate was 0.22[32] - Women represent 33% of the global workforce and 23% of leadership positions[33] - In the U.S., minorities represent 35% of the workforce and 21% of leadership positions[33] - The company's success depends on attracting and retaining key personnel, with potential risks from failure to do so impacting business performance[49] Environmental and Sustainability Goals - The company aims to achieve net zero greenhouse gas emissions across its value chain by 2045, with a 25% reduction target by 2030[36] - The company is focusing on decarbonization and electrification efforts, including technologies like battery storage, hydrogen use, and carbon capture, which are not yet widely adopted[42] Competitive and Market Risks - The company faces competitive pressures that could affect prices or demand for its products, potentially impacting sales, profit margins, and market share[39] - The company's intellectual property is critical to its competitive position, and any failure to protect it could result in competitive harm[43] - The company relies on raw materials like steel, electronics, and rare earth metals, with potential risks from supply disruptions or price increases[46] - Over one-third of the company's sales come from emerging markets, with production facilities located globally, exposing it to risks like political unrest and natural disasters[47] - The company's access to capital markets is essential for business operations, and any disruption could adversely affect its financial results[48] Goodwill and Intangible Assets - Goodwill rose from $13.946 billion in 2022 to $14.480 billion in 2023, indicating continued investment in acquisitions and intangible assets[178] - Goodwill and intangible assets increased in 2022 due to the Heritage AspenTech acquisition, with goodwill balance reaching $14.48 billion as of September 30, 2023[252] - Intangible asset amortization expense for 2023 was $764 million, with expected amortization expenses of $768 million in 2024 and $696 million in 2025[252] Leases and Liabilities - The company's operating lease right-of-use assets increased to $550 million in 2023, with a weighted-average remaining lease term of 6.2 years and a weighted-average discount rate of 4.2%[248] - Total lease liabilities as of September 30, 2023, amount to $548 million, with future lease payments totaling $614 million, less $66 million in interest[250] - The company has an operating lease set to commence in 2024 with a 15-year term and undiscounted future minimum payments of approximately $80 million[250] Pension and Retirement Plans - U.S. pension plans were overfunded by $656 million as of September 30, 2023, while non-U.S. plans were underfunded by $62 million[268] - Total accumulated benefit obligation decreased from $3,910 in 2022 to $3,719 in 2023[269] - U.S. plans' future benefit payments estimated at $222 in 2024, $226 in 2025, $229 in 2026, $230 in 2027, $231 in 2028, and $1,142 total from 2029-2033[270] - Non-U.S. plans' future benefit payments estimated at $62 in 2024, $58 in 2025, $61 in 2026, $63 in 2027, $69 in 2028, and $358 total from 2029-2033[270] - Company expects to contribute approximately $45 to retirement plans in 2024[270] - U.S. retirement plans' discount rate increased to 6.03% in 2023 from 5.64% in 2022[271] - U.S. equities allocation remained at 39% in 2023, within target range of 35-45%[272] - Total fair value of defined benefit pension assets decreased from $4,533 in 2022 to $4,454 in 2023[273] - Postretirement benefit liability decreased from $83 in 2022 to $72 in 2023[277] Stock Compensation and Equity - Total stock compensation expense increased from $144 in 2022 to $271 in 2023, with $250 from continuing operations[294] - As of September 30, 2023, total unrecognized compensation expense related to unvested shares under Emerson plans was $119, expected to be recognized over 1.1 years[294] - Performance share payouts for 2022-2023 period resulted in 1,557 shares earned, with 684 shares distributed in cash for tax withholding[295] - Approximately 1,468,000 shares awarded in 2021 were outstanding as of September 30, 2023, with a 118% performance level achieved[295] - Total fair value of shares earned/vested in 2023 was $158, with $73 distributed in cash for tax withholding[298] - AspenTech granted performance stock units in 2023 with a potential vesting of up to 175% based on performance goals[311] - Common stock reserved for future issuance under AspenTech equity compensation plans was 3.7 million shares as of September 30, 2023[312] - At September 30, 2023, 8.8 million shares of common stock were reserved for issuance under the company's stock-based compensation plans[313] Foreign Currency and Hedging - The notional amount of foreign currency hedge positions as of September 30, 2023, was approximately $2.4 billion, with gains and losses expected to be recognized over the next 12 months[254] - The company issued €1.5 billion in euro-denominated debt in 2019 to hedge foreign currency risk, with gains or losses deferred in accumulated other comprehensive income[255] - Accumulated other comprehensive income (loss) for foreign currency translation ended at $(1,012) in 2023, compared to $(1,265) in 2022[315] - Reclassified gain on sale of business contributed $95 to foreign currency translation in 2023[315] - Amortization of deferred actuarial losses into earnings resulted in a net loss of $(51) in 2023, compared to $70 in 2022[315] Business Segments and Realignment - The company realigned its business segments into six segments and two business groups, including Final Control, Measurement & Analytical, and Discrete Automation[316] - The Final Control segment provides control valves, actuators, and regulators for process and hybrid industries[318] - The Measurement & Analytical segment supplies intelligent instrumentation for measuring physical properties of liquids or gases[318] - The Discrete Automation segment includes solenoid valves, pneumatic valves, and programmable automation control systems[319] - The AspenTech segment reflects the combined results of Heritage AspenTech and the Emerson Industrial Software Business[317] - Prior year amounts have been reclassified to conform to the current year presentation[317] - The company reclassified certain product sales from Control Systems & Software to Discrete Automation[316] Warranty and Contract Assets - Warranty expense is less than 0.5% of sales, with provisions estimated based on historical experience and adjusted quarterly for known issues[198] - The company's unbilled receivables (contract assets) increased from $1,390 million in 2022 to $1,453 million in 2023, while customer advances (contract liabilities) increased from $776 million to $897 million, resulting in a net contract assets decrease from $614 million to $556 million[211] Debt and Credit Facilities - Long-term debt maturities for 2025, 2026, 2027, and 2028 are $538 million, $746 million, $497 million, and $520 million, respectively[263] - The company maintains a $3.5 billion five-year revolving backup credit facility, with no borrowings incurred as of September 30, 2023[262] Other Financial Metrics - Cash provided by operating activities decreased from $3,575 million in 2021 to $637 million in 2023, primarily due to lower cash from discontinued operations[183] - Capital expenditures remained relatively stable, with $404 million in 2021, $299 million in 2022, and $363 million in 2023[183] - Purchases of businesses decreased from $1,592 million in 2021 to $705 million in 2023, indicating a slowdown in acquisitions[183] - Total inventories increased from $1,742 million in 2022 to $2,006 million in 2023, reflecting higher raw materials and work in process[189] - Property, plant and equipment, net increased from $2,239 million in 2022 to $2,363 million in 2023, driven by investments in buildings and machinery[189] - The company adopted ASU No. 2021-10 (Topic 832) in 2023, requiring annual disclosures about government assistance, though it had no material impact on financial statements[185] - The fair value of the company's note receivable as of September 30, 2023, was approximately $1.9 billion, lower than the carrying value by $200 million[258]

Emerson Electric Co. (NYSE:EMR) Q4 2023 Earnings Call Transcript November 7, 2023 8:00 AM ET Company Participants Colleen Mettler - VP of IR Lal Karsanbhai - President and CEO Mike Baughman - CFO Ram Krishnan - COO Conference Call Participants Jeff Sprague - Vertical Research Steve Tusa - JPMorgan Julian Mitchell - Barclays Nigel Coe - Wolfe Research Scott Davis - Melius Research Joe O’Dea - Wells Fargo Christopher Glynn - Oppenheimer Andy Kaplowitz - Citigroup Tommy Moll - Stephens Operator Good day and we ...

Emerson 2023 Q4 & Full Year 2023 Earnings Safe Harbor Statement Statements in this presentation and our commentary and responses to questions that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the s ...