Emerson Q1 Earnings Top Estimates, Software and Control Sales Rise

Core Insights - Emerson Electric Co. reported first-quarter fiscal 2025 adjusted earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.28, marking a 13.1% year-over-year increase [1] - The company's net sales were $4.18 billion, slightly missing the consensus estimate of $4.21 billion, with a year-over-year increase of 1% [1] Financial Performance - The Intelligent Devices segment generated net sales of $2.84 billion, up 0.7% year over year, while the Software & Control Automation Solutions segment reported net sales of $1.35 billion, up 2.9% year over year [3][5] - The cost of sales decreased by 11.9% year over year to $1.9 billion, with a pretax earnings margin of 18.6% compared to 4.2% in the previous year [6] - The company generated net cash of $777 million from operating activities, an increase of 87.2% year over year [8] Segment Performance - In the Intelligent Devices segment, Final Control sales increased by 3.8% to $976 million, while Discrete Automation sales declined by 5.4% to $580 million [4] - In the Software & Control segment, AspenTech's sales surged by 17.9% to $303 million, while Test & Measurement sales fell by 6% to $359 million [5] Outlook - For Q2 fiscal 2025, Emerson anticipates net sales growth between -0.5% to 0.5% and earnings per share in the range of $1.01 to $1.05 [9] - The full fiscal year 2025 outlook includes net sales growth of 1.5% to 3.5%, revised down from a previous estimate of 3.5% to 5.5% [10] Major Developments - Emerson signed an agreement to acquire the remaining shares of Aspen Technology for $7.2 billion, valuing the company at a market capitalization of $17 billion [12][13]