(Reuters) -Emerson Electric reported a lower-than-expected fourth-quarter revenue on ​Wednesday, as the company contends with ‌choppy demand for its automation equipment. Shares of the company fell ‌over 6% in premarket trade. Emerson, which pivoted to focus on automation over the past few years, is still attempting to gain traction and has ⁠struggled to yield stronger ‌margins from the unit. The company streamlined itself over the past few years with moves ‍that included a string of deals to cash in on ...

Core Insights - Emerson Electric Co. reported financial results for Q4 and provided guidance for Q1 and full-year 2026, indicating a focus on earnings and sales growth [1][2] Financial Guidance - For Q1 2026, the company expects earnings of approximately $0.98 per share and adjusted earnings of about $1.40 per share, with net sales growth of around 4.0% and underlying sales growth of about 2% [1] - For fiscal 2026, Emerson projects earnings between $4.73 and $4.93 per share and adjusted earnings between $6.35 and $6.55 per share, with net sales growth of about 5.5% and underlying sales growth of about 4% [2] Analyst Expectations - Analysts anticipate earnings of $1.50 per share with revenue growth of 6.43% to $4.44 billion for the quarter [2] - For the year, the consensus is for earnings of $5.97 per share and revenue growth of 3.27% to $18.06 billion [3] Shareholder Returns - The company plans to return approximately $2.2 billion to shareholders through $1.0 billion in share repurchases and about $1.2 billion in dividends [4] - Emerson declared a 5% increase in its quarterly cash dividend to $0.555 per share, payable on December 10, 2025, to stockholders of record on November 14, 2025 [4] - The Board of Directors authorized the repurchase of up to 50 million shares of common stock [4]

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Financial Performance - Net sales for Q4 2025 were $4,855 million, representing a 5% increase from Q4 2024's $4,619 million[1] - Full year net sales increased by 3% to $18,016 million in 2025, up from $17,492 million in 2024[1] - GAAP earnings per share for Q4 2025 rose by 15% to $1.12, compared to $0.97 in Q4 2024[1] - Adjusted earnings per share for the full year 2025 were $6.00, a 9% increase from $5.49 in 2024[1] - Net earnings for the year ended September 30, 2024, were $1,955 million, projected to increase to $2,246 million in 2025[18] - The year ended September 30, 2025, saw GAAP earnings of $2,285 million, with diluted earnings per share at $4.03[41] - Adjusted (non-GAAP) earnings for the year were $3,404 million, leading to adjusted diluted earnings per share of $6.00[41] Cash Flow and Returns - Operating cash flow for 2025 was $3,676 million, an 11% increase from $3,317 million in 2024[1] - Free cash flow for 2025 was $3,245 million, a 12% increase from $2,898 million in 2024[1] - The company plans to return approximately $2.2 billion to shareholders in 2026, including about $1 billion in share repurchases and $1.2 billion in dividends[3] - Free cash flow for FY24 is $2,898 million and for FY25 it is expected to be $3,245 million, with projections for FY26E ranging from $3.5 billion to $3.6 billion[45] Segment Performance - Emerson achieved $200 million in run-rate cost synergies from the integration of AspenTech and Test & Measurement[2] - The Intelligent Devices segment reported sales of $12,161 million for the year ended September 30, 2024, with a projected increase to $12,400 million in 2025, reflecting a 2% growth[25] - Adjusted EBITA for the Final Control segment was $271 million for Q4 2024, expected to rise to $305 million in Q4 2025, with margins increasing from 23.2% to 26.1%[28] - The Control Systems & Software segment achieved an adjusted EBITA of $98 million for Q4 2024, with margins expected to improve from 9.8% to 24.0% in Q4 2025[28] - The Final Control segment reported an adjusted EBITA of $335 million for Q4 2025, with an EBITA margin of 27.6%[44] - The Intelligent Devices segment achieved an adjusted EBITA of $926 million for Q4 2025, with an EBITA margin of 27.2%[44] - Control Systems & Software segment EBITA margin improved significantly from 28.1% in 2024 to 33.0% in 2025, with EBITA increasing from $1,107 million to $1,388 million[45] Sales Growth - Sales growth in the Americas for the quarter ended September 30, 2024, was 6%, while Europe and Asia, Middle East & Africa saw growth of 3% and 2%, respectively[23] - The company experienced a 5% underlying sales change for the fourth quarter of FY25, with a 4% underlying growth guidance for Q1 2026[43] - The 2026 outlook projects net sales growth of approximately 5.5% and underlying sales growth of around 4%[4] Cost and Expenses - The company incurred restructuring and related costs of $64 million for the quarter ended September 30, 2024, which rose to $81 million in 2025[38] - The total adjusted corporate and other expenses for the quarter ended September 30, 2024, were $(60) million, improving to $(34) million in 2025[35] - The company incurred $257 million in amortization of intangibles and $61 million in restructuring and related costs for Q4 2025[44] Depreciation and Amortization - Total depreciation and amortization for the quarter ended September 30, 2024, was $426 million, down from $379 million in 2025[32] - The company’s amortization of intangibles for the year ended September 30, 2024, was $1,274 million, decreasing to $1,083 million in 2025[39] Other Financial Metrics - The company reported a margin increase of 170 basis points in Q4 2025, reaching 16.4% compared to 14.7% in Q4 2024[1] - Total pretax earnings (GAAP) increased from $2,020 million in 2024 to $2,934 million in 2025, reflecting a margin increase from 11.5% to 16.3%[45] - Adjusted EBITA for the quarter ended September 30, 2024, was $1,135 million, representing a 24.6% margin, compared to $1,271 million and a 26.2% margin in 2025[38]

Core Insights - Emerson reported solid financial results for the fourth quarter and fiscal year 2025, with a 5% increase in quarterly cash dividend and a share repurchase authorization of up to 50 million shares [1][3][4] Financial Performance - Net sales for Q4 2025 reached $4,855 million, a 5% increase from Q4 2024's $4,619 million, while total net sales for fiscal year 2025 were $18,016 million, up 3% from $17,492 million in 2024 [2][16] - Underlying orders growth was 4% in Q4 2025, compared to 6% in Q4 2024, indicating a slight slowdown [2] - GAAP earnings per share increased by 15% to $1.12 in Q4 2025 from $0.97 in Q4 2024, and for the full year, it rose 43% to $4.03 from $2.82 [2][16] Margin and Earnings - Pretax earnings for Q4 2025 were $796 million, up from $679 million in Q4 2024, with a margin increase from 14.7% to 16.4% [2][16] - Adjusted segment EBITA for Q4 2025 was $1,333 million, reflecting a margin improvement to 27.5% from 26.2% in Q4 2024 [2][16] Management Commentary - The CEO highlighted the successful integration of AspenTech and the completion of the Test & Measurement integration, achieving $200 million in run-rate cost synergies [3] - The company is positioned to benefit from long-term secular trends, supporting mid-single-digit underlying orders growth for three consecutive quarters [3] 2026 Outlook - For fiscal year 2026, Emerson anticipates net sales growth of approximately 5.5% and adjusted earnings per share between $6.35 and $6.55 [4][5] - The company plans to return approximately $2.2 billion to shareholders through share repurchases and dividends [4]

Industry Overview - Robotics companies are leading innovation, enhancing efficiency and productivity in sectors like manufacturing, healthcare, and logistics, with the global robotics market expected to experience significant growth driven by technological advancements and increasing automation demand [1][2] - The integration of hardware, software, and AI in robotics allows for the development of intelligent machines capable of performing complex tasks autonomously or semi-autonomously [2] Investment Potential - The high growth potential in the robotics sector promises substantial returns for investors, while also addressing labor shortages and improving task precision, which can lead to reduced operational costs and enhanced quality [2] - Despite the promising landscape, the investment environment is fraught with risks, including high R&D costs, regulatory challenges, market volatility, and societal impacts of automation [3] Recommended Stocks - Five robotics stocks are recommended for investment in the last two months of 2025: UiPath Inc. (PATH), Emerson Electric Co. (EMR), Trimble Inc. (TRMB), Omnicell Inc. (OMCL), and Lincoln Electric Holdings Inc. (LECO), all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4][7] Company Highlights - **UiPath Inc. (PATH)**: Expected revenue growth of 10.1% and earnings growth of 22.6% for the current year, with an 18.1% improvement in earnings estimates over the past 60 days [9] - **Emerson Electric Co. (EMR)**: Anticipates revenue growth of 4.9% and earnings growth of 8.4% for the current year, with a slight 0.2% increase in earnings estimates over the last 60 days [11] - **Trimble Inc. (TRMB)**: Expected revenue decline of 4.4% but earnings growth of 4.9% for the current year, with a 3.1% improvement in earnings estimates over the last 60 days [13] - **Omnicell Inc. (OMCL)**: Projected revenue growth of 0.1% and earnings growth of 8.2% for the current year, with a 4.7% increase in earnings estimates over the last seven days [15] - **Lincoln Electric Holdings Inc. (LECO)**: Expected revenue growth of 5.2% and earnings growth of 4.5% for the current year, with a 0.6% improvement in earnings estimates over the last 30 days [18]

Core Insights - The article emphasizes the effectiveness of investing in dividend growth stocks and reinvesting dividends as a strategy for long-term wealth growth [1] Group 1: Investment Strategy - The individual investor has explored various investment styles over 25 years, concluding that dividend growth stocks are a reliable method for wealth accumulation [1] - The investor operates a blog focused on S&P Dividend Aristocrats and other dividend growth stocks, indicating a commitment to sharing knowledge in this area [1] Group 2: Investment Vehicles - The investor has experience with a range of investment vehicles, including stocks, options, ETFs, treasury notes, and mutual funds, showcasing a diverse investment background [1]

Core Insights - Emerson Electric Co. (EMR) is expected to report earnings and revenue growth for the fourth quarter of fiscal 2025, with revenues estimated at $4.88 billion, reflecting a 5.7% increase year-over-year [1] - The consensus estimate for earnings is $1.62 per share, indicating a 9.5% increase from the previous year, with a slight upward revision of 0.6% in the last 30 days [2] Revenue Performance - The Intelligent Devices segment is projected to see a revenue increase of 4.5% year-over-year to $3.4 billion, driven by strong performance in the final control business and recovery in the Discrete Automation business across North America and Asia, Middle East & Africa [3] - The Software and Control segment is expected to grow by 11.4% year-over-year to $1.5 billion, supported by momentum in the Control Systems & Software business and recovery in the Test & Measurement unit across the Americas and Europe [4] - Emerson anticipates underlying sales to rise approximately 5-6% year-over-year in the fiscal fourth quarter [5] Strategic Acquisitions - In March 2025, Emerson acquired the remaining shares of AspenTech, enhancing its automation portfolio and software-defined control capabilities [6] - The company completed the buyout of National Instruments for $8.2 billion in October 2023, strengthening its global automation presence and expanding into high-growth markets such as semiconductors, transportation, and aerospace [6] Cost and Margin Considerations - Rising costs and expenses due to higher input costs and restructuring actions are likely to impact EMR's margin performance [7] - Foreign currency headwinds from substantial international operations may also affect margins and profitability [7] Earnings Prediction - The current Earnings ESP for Emerson is -0.80%, indicating a lower likelihood of an earnings beat, as the Most Accurate Estimate is $1.60 per share, below the consensus estimate of $1.62 [8]

Core Insights - Emerson Electric Co. is a global technology and engineering company with a market cap of $78.6 billion, providing solutions across various sectors including industrial, commercial, and residential markets [1] Stock Performance - The stock has underperformed the broader market in 2025, with a 12.6% increase, but has outperformed over the past year with a 28% rise compared to the S&P 500 Index's 16.3% YTD gains and 17.7% returns over the past year [2] - Compared to the Industrial Select Sector SPDR Fund (XLI), EMR has lagged behind its 17.7% gains in 2025 but outperformed XLI's 14.5% returns over the past year [3] Financial Results - Following the release of mixed Q3 results, Emerson's stock dropped 4.7%, primarily due to net sales of $4.6 billion missing expectations by 60 basis points, although this figure represented a nearly 4% year-over-year increase [4] - The company reported strong profitability and cash flows, with adjusted EPS increasing 6.3% year-over-year to $1.52, surpassing consensus estimates by 66 basis points, and generated free cash flows of $970 million during the quarter [4] Future Outlook - For the full fiscal 2025, analysts expect an adjusted EPS of $6, reflecting a 9.3% year-over-year increase, with a solid earnings surprise history as the company has exceeded bottom-line estimates in the past four quarters [5] - Among 24 analysts covering EMR, the consensus rating is a "Moderate Buy," consisting of 15 "Strong Buys," one "Moderate Buy," seven "Holds," and one "Moderate Sell" [5] - A month ago, the outlook was slightly more optimistic with 16 analysts recommending "Strong Buy" [6] Analyst Ratings - On October 15, JP Morgan analyst Stephen Tusa maintained a "Neutral" rating on EMR and raised the price target from $135 to $151 [7]

Core Insights - Emerson Electric Co. (NYSE:EMR) is recognized as one of the 13 most undervalued dividend stocks according to Wall Street analysts [1] - RBC Capital has raised its price target for Emerson Electric to $155 from $154, maintaining an Outperform rating ahead of Q3 earnings [3] - The company is noted for its strong dividend track record, with a 67-year history of dividend growth and a current yield of 1.55% [5] Company Overview - Emerson Electric is a technology and software firm that provides automation solutions, engineering services, and software across various industries, including process and hybrid sectors [2] Market Drivers - Long-term drivers such as electrification, reshoring, and growth in datacenter and AI infrastructure are expected to support steady mid-cycle growth and solid earnings visibility [4] - The datacenter sector is highlighted as the strongest area, while municipal water follows, with residential construction, HVAC, and chemicals identified as weaker markets [4] Dividend Information - The company offers a quarterly dividend of $0.5275 per share, contributing to its reputation for a strong dividend growth streak [5]