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 scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual pr ...

Financial Performance - Emerson Electric reported adjusted earnings per share (EPS) of $1.38, exceeding analyst expectations by 7.8% [1] - Total revenue for the first quarter was $4.175 billion, slightly below the estimated $4.221 billion, marking a year-over-year increase of 1.4% [2][3] - Operating cash flow increased by 75% to $777 million, while free cash flow nearly doubled to $694 million, reflecting strong cash management [9] Business Strategy and Transformation - The company is undergoing a significant portfolio transformation to enhance its leadership in automation and intelligent technology, focusing on strategic acquisitions and divestitures [4] - Recent acquisitions include National Instruments and an expanded stake in AspenTech, aimed at strengthening capabilities in software and automation [4] - Emerson divested businesses like Climate Technologies to concentrate on high-margin areas, enhancing growth and operational efficiency [5] Segment Performance - The Intelligent Devices segment experienced a modest 1% sales growth, with margins increasing from 21% to 24.1% [7] - The Software and Control segment saw an 18% sales growth, improving its margin to 14.4% due to AspenTech's performance [7] - Discrete Automation faced challenges with a 5% sales decline, indicating areas for market strategy adaptation [7] Geographic Performance - Sales increased in the Americas by 3% and in Asia by 4%, while Europe experienced a 2% decline, highlighting the need for strategic focus in high-opportunity regions [8] - Emerson's investment in R&D was 8.1% of sales, demonstrating a commitment to innovation and sustainability initiatives [8] Outlook - For the remainder of 2025, Emerson anticipates underlying sales growth of 3% to 5% and plans to return approximately $3.2 billion to shareholders through dividends and share repurchases [10] - The company is exploring strategic alternatives for its Safety & Productivity segment to streamline focus on core business areas related to automation [11] - Management forecasts robust mid-single-digit growth in discrete and hybrid markets, supporting an optimistic outlook amid potential industry shifts [12]

Core Insights - Emerson Electric (EMR) reported revenue of $4.18 billion for the quarter ended December 2024, reflecting a year-over-year increase of 1.4% and an EPS of $1.38 compared to $1.22 a year ago, with an EPS surprise of +7.81% [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $4.21 billion, resulting in a revenue surprise of -0.91% [1] Financial Performance Metrics - Net Sales for Intelligent Devices totaled $2.84 billion, slightly below the average estimate of $2.86 billion, with a year-over-year change of +0.7% [4] - Net Sales for Software and Control reached $1.35 billion, compared to the average estimate of $1.36 billion, marking a +2.9% year-over-year change [4] - Net Sales for Intelligent Devices in Discrete Automation was $580 million, below the estimated $604.49 million, representing a -5.4% change year-over-year [4] - Net Sales for Intelligent Devices in Safety & Productivity was $312 million, compared to the estimated $318.79 million, reflecting a -3.1% change year-over-year [4] - Net Sales for Software and Control in Test & Measurement was $359 million, below the average estimate of $367.91 million [4] - Net Sales for Intelligent Devices in Final Control was $976 million, slightly above the estimated $969.86 million, with a +3.8% year-over-year change [4] - Net Sales for Software and Control in Control Systems & Software was $690 million, compared to the average estimate of $707.48 million, marking a +2.2% year-over-year change [4] - Net Sales for Software and Control in AspenTech was $303 million, exceeding the average estimate of $286.54 million, with a +17.9% year-over-year change [4] - Net Sales for Intelligent Devices in Measurement & Analytical was $975 million, slightly above the estimated $970.49 million, reflecting a +3% change year-over-year [4] - EBIT for Intelligent Devices totaled $686 million, exceeding the average estimate of $639.16 million [4] - EBIT for Intelligent Devices in Final Control was $236 million, above the three-analyst average estimate of $207.28 million [4] Stock Performance - Emerson Electric shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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].