Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales up 3% [9] - Operating cash flow increased by 11% and free cash flow rose by 12% [9] - Earnings per share surged by 43%, while adjusted earnings per share grew by 9% [9] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [9] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [9] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries, aligning with long-term secular trends and customer investment priorities [9] Management Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of recent acquisitions in enhancing the company's automation capabilities [9] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors did not receive the required 85% of outstanding shares voting in favor and therefore was not approved [10] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [9]

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Core Insights - Emerson Electric Co. (EMR) is expected to report earnings and revenue growth for Q1 fiscal 2026, with revenue estimates at $4.35 billion, reflecting a 4.2% increase from the previous year [2][9] - The earnings consensus is set at $1.41 per share, indicating a 2.2% rise from the prior year, with the company having a history of beating earnings estimates in three of the last four quarters [3] Revenue Growth Drivers - Strength in the final control business, particularly in power end markets, is anticipated to positively impact the Intelligent Devices segment, with sales estimated at $2.96 billion, a 3.9% increase year-over-year [4] - The Control Systems & Software business is expected to benefit from AspenTech's performance and demand in power and process markets, with sales projected at $1.42 billion, a 5.1% rise from the previous year [5] Strategic Acquisitions - Emerson's acquisition of AspenTech in March 2025 and National Instruments for $8.2 billion in October 2023 has strengthened its automation portfolio and expanded its presence in high-growth markets such as semiconductors, transportation, and aerospace [6] Margin Challenges - Rising costs and expenses due to higher input costs and restructuring actions may negatively impact EMR's margin performance, alongside foreign currency headwinds affecting profitability [7] Earnings Prediction Model - The current Earnings ESP for EMR is -0.04%, indicating that the model does not predict a definitive earnings beat for this reporting cycle [8]

With an impressive market cap of $64.6 billion, Emerson Electric Company (EMR) is a global technology and engineering company based in Missouri. It offers innovative solutions across industrial, commercial, and residential markets through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. Shares of this industrial heavyweight have outperformed the broader market over the past year. EMR has soared 17% over this ...

Core Viewpoint - Analysts project Emerson Electric (EMR) will report quarterly earnings of $1.41 per share, reflecting a 2.2% year-over-year increase, with revenues expected to reach $4.35 billion, a 4.2% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.1% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Net Sales- Intelligent Devices- Total' at $2.96 billion, a 4% increase from the prior-year quarter [5]. - 'Revenue- Software And Control- Control Systems & Software' is projected to be $1.00 billion, reflecting a significant 45.5% increase year-over-year [5]. - The consensus for 'Net Sales- Intelligent Devices- Final Control' is $1.03 billion, indicating a 5.4% increase from the previous year [6]. - 'Net Sales- Intelligent Devices- Measurement & Analytical' is expected to reach $1.01 billion, a 3.6% increase from the prior-year quarter [6]. - 'Net Sales- Intelligent Devices- Safety & Productivity' is projected at $314.19 million, a 0.7% increase year-over-year [7]. - 'Net Sales- Software And Control- Total' is expected to be $1.42 billion, reflecting a 5.1% increase from the previous year [7]. - 'Net Sales- Software and Control- Test & Measurement' is forecasted to reach $417.58 million, a 16.3% year-over-year increase [8]. - 'Net Sales- Intelligent Devices- Discrete Automation' is projected at $602.84 million, indicating a 3.9% increase from the prior year [8]. EBIT Estimates - Analysts expect 'EBIT- Intelligent Devices- Final Control' to reach $244.13 million, compared to $236.00 million in the same quarter last year [8]. - 'EBIT- Intelligent Devices- Measurement & Analytical' is projected at $259.68 million, down from $285.00 million in the previous year [9]. - The average prediction for 'EBIT- Intelligent Devices- Discrete Automation' is $127.41 million, up from $98.00 million year-over-year [9]. - 'EBIT- Software and Control- Total' is expected to be $200.75 million, compared to $195.00 million in the same quarter last year [10]. Stock Performance - Emerson Electric shares have increased by 11.8% over the past month, outperforming the Zacks S&P 500 composite, which rose by 0.8% [11].

Group 1 - Emerson Electric Co. is recognized as one of the 13 Best Dividend Kings to buy in 2026, indicating strong dividend performance and stability [1] - JPMorgan has raised its price target for Emerson Electric to $157 from $150 while maintaining a Neutral rating, reflecting a more favorable outlook for growth-related names in the electrical equipment sector [2] - The company reported fourth-quarter revenue that fell below expectations, with uneven demand for its automation equipment, highlighting challenges in its transition to a more automation-focused business [2] Group 2 - To address long-term automation demand, Emerson has been active in streamlining its portfolio and investing in growth areas, including a significant acquisition of AspenTech valued at approximately $15.1 billion [3] - Despite mixed demand for automation, Emerson's measurement and analytical devices segment has performed well, driven by steady demand from the chemical, oil, and gas markets [4] - Emerson Electric Co. operates as a global technology and software company, providing solutions across various industries worldwide [4]

Industry Overview - The Zacks Manufacturing - Electronics industry is experiencing stable demand due to the electronic services end market, increased adoption of advanced manufacturing technologies, and product innovation efforts [1] - A surge in e-commerce activities is expected to further support the industry's growth [1] Industry Challenges - A slowdown in the manufacturing sector and supply-chain issues are negatively impacting the performance of some industry participants [2] - The manufacturing sector has contracted for ten consecutive months, with the Manufacturing PMI at 47.9% in December, indicating a contraction in manufacturing activity [6] Industry Trends - Demand across key end markets remains stable despite manufacturing slowdowns, with electronics manufacturers benefiting from the integration of advanced electronic components [4] - Companies are increasingly investing in digitization to enhance operational productivity, product quality, and reduce costs [5] Industry Performance - The Zacks Manufacturing - Electronics industry has underperformed compared to the broader sector and the S&P 500, growing 5.4% over the past year, while the sector rose 10.3% and the S&P 500 increased by 19.4% [10] Current Valuation - The industry is currently trading at a forward 12-month Price-to-Earnings (P/E) ratio of 22.27X, which is above the sector's P/E of 21.68X but below the S&P 500's P/E of 23.38X [13] Notable Companies - **Powell Industries, Inc. (POWL)**: Engaged in manufacturing custom-engineered equipment, benefiting from strong project activity in electric utility and industrial markets, with shares up 55.2% in the past year [18][19] - **Emerson Electric Co. (EMR)**: Offers a range of products and services, experiencing solid momentum in the Final Control business, with shares gaining 18.9% in the past year [22][23] - **Eaton Corporation plc (ETN)**: A diversified power management company benefiting from rising demand in AI-data centers, with shares down 3.7% over the past year but up 5.6% in the past month [26][27] - **EnerSys (ENS)**: Focused on industrial batteries, well-positioned due to strong momentum in aerospace and defense markets, with shares rising 19.2% in the past year [30][31]

Core Viewpoint - The article discusses Emerson Electric's stock performance and previous rating, indicating a Hold rating when the stock was priced at approximately $122 per share nearly a year ago [1]. Company Summary - Emerson Electric's stock was last covered following their Q1 2025 earnings report, with a noted trading price of about $122 per share [1].

Core Viewpoint - Emerson Electric Co. (EMR) is characterized as a "buy-and-forget" business, indicating its stable and less volatile nature in the market [1]. Group 1: Company Analysis - The analysis focuses on high-quality companies that can outperform the market over the long run due to their competitive advantages, referred to as economic moats [1]. - The emphasis is on companies located in Europe and North America, without restrictions on market capitalization, covering both large-cap and small-cap companies [1]. - The author has an academic background in sociology, holding a Master's Degree with a focus on organizational and economic sociology, which may influence the analytical perspective [1].

Core Viewpoint - Emerson is set to report its first quarter results on February 3, 2026, with a conference call scheduled for the same day to discuss the results [1]. Group 1: Company Information - Emerson is a global automation leader headquartered in St. Louis, Missouri, focused on delivering solutions for demanding technology challenges [3]. - The company is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation [3]. Group 2: Investor Relations - 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]. - Emerson uses its Investor Relations website to disclose information of interest to investors and comply with disclosure obligations under Regulation FD [4].