Core Viewpoint - Emerson Electric reported quarterly earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and showing an increase from $1.22 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 7.81%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $4.18 billion, slightly missing the Zacks Consensus Estimate by 0.91%, but up from $4.12 billion year-over-year [3] - The company has topped consensus revenue estimates two times over the last four quarters [3] Stock Performance - Emerson Electric shares have increased approximately 3% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.43 for the coming quarter and $5.91 for the current fiscal year, with revenues expected to be $4.45 billion and $18.06 billion respectively [8] - The estimate revisions trend for Emerson Electric is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Manufacturing - Electronics industry, to which Emerson Electric belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable environment for stock performance [9]

Financial Performance - For Q1 fiscal 2025, net sales were $4.2 billion, up 1% year-over-year, with underlying sales increasing by 2%[61] - Earnings from continuing operations attributable to common stockholders were $585 million, a 247% increase, with diluted earnings per share rising to $1.02, up 252% from $0.29 in the prior year[62] - Adjusted diluted earnings per share from continuing operations were $1.38, reflecting a 13% increase compared to $1.22 in the prior year[66] - Gross profit for Q1 fiscal 2025 was $2.2 billion, a 17% increase, with gross margin improving to 53.5%, up 7 percentage points[67] - Pretax earnings from continuing operations increased to $775 million, a 343% rise compared to the prior year[71] - Total sales for Software and Control were $1,352 million in Q1 2025, a 3% increase year-over-year, driven by strong growth in AspenTech[79] - Earnings for Software and Control rose to $195 million, a 434% increase, with a margin improvement of 11.6 percentage points to 14.4%[79] Expenses and Cash Flow - Selling, general and administrative (SG&A) expenses decreased to $1.2 billion, down 4%, with SG&A as a percentage of sales decreasing to 29.3%[69] - Operating cash flow from continuing operations was $777 million, up $333 million from the prior year, reflecting higher earnings[83] - Free cash flow from continuing operations was $694 million, an increase of $327 million compared to the previous year[83] Sales and Market Trends - Intelligent Devices sales were $2.8 billion, up 1%, with underlying sales increasing by 2% driven by higher prices and volume[78] - AspenTech sales increased by $46 million, or 18%, due to strong license revenue from renewals and new contracts[79] - Foreign currency translation had a 1% unfavorable impact on sales, with underlying sales up 1% in the U.S. and 3% internationally[67] Future Projections - For fiscal year 2025, consolidated net sales are expected to increase by 1.5% to 3.5%, with underlying sales up 3% to 5%[88] - Earnings per share for fiscal 2025 are projected to be between $4.42 and $4.62, with adjusted earnings per share expected to be between $5.85 and $6.05[89] - Operating cash flow for fiscal 2025 is anticipated to be between $3.6 billion and $3.7 billion, with free cash flow expected to be between $3.2 billion and $3.3 billion[89] Tax and Financial Ratios - The effective tax rate for Q1 fiscal 2025 was 24%, compared to 9% in the prior year, influenced by discrete tax benefits in the previous year[72] - The current ratio decreased to 1.5 as of December 31, 2024, reflecting a decrease in cash due to share repurchases[82] Acquisition - Emerson announced an agreement to acquire the remaining 43% of AspenTech for $265 per share, valuing the transaction at $7.2 billion[85]

Core Insights - Emerson reported strong first-quarter results for fiscal 2025, with net sales of $4.175 billion, a 1% increase from the previous year, and a significant rise in pretax earnings to $775 million, up 1440 basis points in margin to 18.6% [1][12][25] - The company declared a quarterly cash dividend of $0.5275 per share, payable on March 10, 2025 [1] - Emerson's management reiterated guidance for underlying sales growth of 1%-2% for Q2 and 3%-5% for the second half of fiscal 2025, driven by resilient demand in process and hybrid markets [2][4] Financial Performance - Net sales for Q1 2025 were $4.175 billion, compared to $4.117 billion in Q1 2024, reflecting a 1% increase [1][12] - Underlying sales growth was reported at 2% for Q1 2025 [1] - Adjusted earnings per share increased by 13% to $1.38, while GAAP earnings per share surged by 252% to $1.02 [1][25] - Operating cash flow rose by 75% to $777 million, and free cash flow increased by 89% to $694 million [1][25] Segment Performance - The Intelligent Devices segment reported sales of $2.843 billion, a 1% increase, while the AspenTech segment saw an 18% increase in sales to $303 million [1][16] - The Final Control segment achieved a 4% sales growth, while Discrete Automation experienced a decline of 5% [16][31] - Adjusted segment EBITA for Q1 2025 was $1.169 billion, with a margin of 28.0%, up from 24.6% in the previous year [1][25] 2025 Outlook - Emerson plans to return approximately $3.2 billion to shareholders through $2.0 billion in share repurchases and $1.2 billion in dividends [3] - The company expects net sales growth for Q2 2025 to be between (0.5%) and 0.5%, with underlying sales growth projected at 1%-2% [4][31] - The guidance does not account for the impact of recent portfolio transactions related to AspenTech and Safety & Productivity [3][6]

Emerson Reports First Quarter 2025 Results; Updates 2025 Outlook ST. LOUIS (February 5, 2025) - Emerson (NYSE: EMR) today reported results for its first quarter ended December 31, 2024 and updated its full year outlook for fiscal 2025. Emerson also declared a quarterly cash dividend of $0.5275 per share of common stock payable March 10, 2025 to stockholders of record on February 14, 2025. 1 | (dollars in millions, except per share) | 2024 Q1 | 2025 Q1 | Change | | --- | --- | --- | --- | | 2 Underlying Orde ...

Emerson Electric Co. (EMR) is likely to witness bottom and top-line growth when it reports first-quarter fiscal 2025 (ended Dec. 31, 2024) results on Feb. 5, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.2 billion, indicating growth of 2.3% from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus mark for earnings is pinned at $1.28 per share, which has remained steady in the past 60 days. The figure indicates ...

Analysts on Wall Street project that Emerson Electric (EMR) will announce quarterly earnings of $1.28 per share in its forthcoming report, representing an increase of 4.9% year over year. Revenues are projected to reach $4.21 billion, increasing 2.3% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this ...

Core Viewpoint - Emerson Electric Co. (EMR) has signed an agreement to acquire the remaining shares of Aspen Technology, Inc. (AZPN) for $7.2 billion, following its previous acquisition of a majority stake in AspenTech [1][3]. Group 1: Acquisition Details - EMR will offer $265 in cash for each of the remaining shares of AspenTech, valuing the company at a market capitalization of $17.0 billion and an enterprise value of $16.8 billion [3]. - The acquisition is expected to be completed in the first half of 2025, subject to customary closing conditions [5]. Group 2: Strategic Rationale - The acquisition aligns with EMR's strategy to enhance operations and expand market presence, particularly by boosting its automation portfolio [4]. - AspenTech's asset optimization software solutions will enable EMR to penetrate new markets and advance capabilities in software-defined control [2][4]. Group 3: Financial Performance - EMR currently holds a Zacks Rank 3 (Hold) and has seen a stock price increase of 38.3% over the past year, outperforming the industry growth of 9.6% [6]. - The company is experiencing solid momentum in its Intelligent Devices and Software and Control segments, with strength in the energy and power end markets [6].

Core Viewpoint - Emerson Electric has agreed to acquire the remaining shares of AspenTech for $7.2 billion, enhancing its position in the industrial software market [1][2][3]. Company Summary - Emerson currently holds a 57% stake in AspenTech and has offered $265 per share for the remaining shares, which is a 10.4% increase from its previous offer of $240 per share [2][3]. - The acquisition will give AspenTech an implied market valuation of $16.8 billion [3]. - The deal is expected to close in the first half of the year, after which AspenTech will operate as a wholly owned subsidiary of Emerson [4]. Industry Context - This acquisition reflects a trend in the industrial automation market, where companies like Schneider Electric and Honeywell are also expanding their software capabilities to compete in a rapidly evolving landscape driven by AI and big data [5][6]. - Emerson's CEO emphasized the importance of this transaction for the company's portfolio transformation and future innovation in industrial software [7][8].

Transaction Overview - Emerson will acquire all outstanding shares of AspenTech not already owned by Emerson for $265 per share in an all-cash tender offer, valuing the minority stake at $7.2 billion and the total company at a fully diluted market capitalization of $17.0 billion with an enterprise value of $16.8 billion [1] - Emerson currently owns approximately 57% of AspenTech's outstanding shares following its 55% majority investment in 2022 [1] - Upon closing, AspenTech will become a wholly owned subsidiary of Emerson [1] Transaction Approvals and Process - The transaction was unanimously recommended by a special committee of AspenTech's Board of Directors and approved by both AspenTech and Emerson's Boards of Directors [2] - The tender offer is subject to a non-waivable condition that at least a majority of AspenTech common stock held by minority stockholders be tendered and not withdrawn [4] - The transaction is expected to close in the first half of 2025, subject to customary closing conditions, and will be financed through cash on hand and debt financing [5] - AspenTech's common stock will cease to trade on NASDAQ once the transaction closes [5] Strategic Rationale and Leadership Commentary - The acquisition marks a key milestone in Emerson's portfolio transformation, aiming to advance its vision for software-defined control [3] - Emerson's CEO emphasized the opportunity to fully integrate AspenTech and offer shareholders compelling value [3] - AspenTech's leadership highlighted the transaction as the best path forward for the company and its shareholders, citing Emerson's strong partnership and the potential to further differentiate offerings [3] Advisors and Legal Counsel - Goldman Sachs & Co LLC and Centerview Partners LLC are serving as financial advisors to Emerson, with Davis Polk & Wardwell LLP as legal advisor [6] - Qatalyst Partners and Citi are serving as independent financial advisors to the AspenTech Special Committee, with Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel [7] Company Profiles - Emerson is a global technology and software company providing innovative solutions for essential industries, with a focus on automation and sustainability [8][9] - AspenTech is a global software leader helping industries optimize asset design, operation, and maintenance to meet resource demands in a profitable and sustainable manner [10]

Company Overview - Emerson (NYSE: EMR) is a global technology and software company that provides innovative solutions for essential industries [3] - The company has a leading automation portfolio, including a majority stake in AspenTech, aimed at helping manufacturers optimize operations, protect personnel, reduce emissions, and achieve sustainability goals [3] Upcoming Financial Results - Emerson will report its first quarter results on February 5, 2025, prior to market open [1] - A conference call to discuss the results will take place at 8:30 a.m. Eastern Time on the same day [1] Investor Engagement - Interested parties can listen to the live conference call and view presentation slides by visiting the Investors area of Emerson's website [2] - A replay of the conference call will be available for three months following the webcast on the same website [2] Disclosure Practices - Emerson utilizes its Investor Relations website to disclose information that may be of interest to investors and to comply with Regulation FD [4] - Investors are encouraged to monitor the Investor Relations website, press releases, SEC filings, public conference calls, webcasts, and social media for updates [4]