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. (EMR) is experiencing strong demand across most of its end markets, leading to an increase in underlying sales by 2% year over year in the first half of fiscal 2025 [1][3] - The company has updated its fiscal 2025 sales growth forecast to approximately 4% year over year, up from the previous estimate of 1.5-3.5% [3][7] - The acquisition of AspenTech has enhanced EMR's automation portfolio and expanded its market presence, particularly in software-defined control [4][7] Demand and Performance - Solid demand in the process and hybrid industries is driving sales growth, particularly in life sciences, energy, liquefied natural gas (LNG), and power end markets [1][7] - The Intelligent Devices and Software & Control segments are showing strong momentum, with notable growth in the Final Control business and Measurement & Analytical business across Asia, the Middle East, and Africa [2] Financials and Shareholder Returns - In the first half of 2025, Emerson paid out dividends totaling $598 million and repurchased $1.12 billion in common stocks, with plans to repurchase $2.3 billion and pay out $1.2 billion in dividends for the full fiscal year [5] - The stock has gained 13.5% over the past year, outperforming the industry, which saw a decline of 12.3% [6] Challenges and Risks - The company faces challenges in the Safety & Productivity, Discrete Automation, and Test & Measurement businesses due to weak demand and regional softness, particularly in Europe and Asia [9] - Adverse foreign currency translation impacted sales by 1% year over year in the second quarter of fiscal 2025, highlighting the risks associated with its significant international presence [10]