Core Insights - Emerson Electric Co. (EMR) is expected to report growth in both revenue and earnings for the second quarter of fiscal 2025, with revenue estimated at $4.38 billion, reflecting a 0.1% increase year-over-year, and earnings per share projected at $1.42, a 4.4% rise from the previous year [1][3]. Group 1: Performance Expectations - The Intelligent Devices segment is anticipated to see a slight revenue decrease of 0.1% to $3.06 billion, influenced by strong performance in the final control business and solid momentum in power end markets [3][4]. - The Software and Control segment is expected to grow by 0.6% year-over-year to $1.34 billion, driven by robust growth in the Control Systems & Software business and increased license revenues from AspenTech [5]. Group 2: Recent Acquisitions - The acquisition of Afag and Flexim in Q4 of fiscal 2023 has enhanced Emerson's capabilities in factory automation and flow measurement, expanding its reach into high-demand markets such as battery manufacturing and automotive [6]. - The recent acquisition of National Instruments in October 2023 is likely to further strengthen Emerson's position in high-growth sectors, including semiconductors and electric vehicles [7]. Group 3: Cost and Margin Considerations - Rising costs associated with acquisitions and restructuring efforts may negatively impact EMR's margin performance, alongside potential foreign currency headwinds affecting profitability [8]. Group 4: Earnings Predictions - The company has a positive Earnings ESP of +2.42%, with the most accurate estimate at $1.45 per share, suggesting a strong likelihood of an earnings beat [10].

The upcoming report from Emerson Electric (EMR) is expected to reveal quarterly earnings of $1.42 per share, indicating an increase of 4.4% compared to the year-ago period. Analysts forecast revenues of $4.38 billion, representing an increase of 0.1% year over year.The current level reflects a downward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this pe ...

Company Performance - Emerson Electric (EMR) closed at $105.28, reflecting a +0.22% change from the previous day, underperforming the S&P 500's gain of 0.74% [1] - Over the past month, EMR shares have decreased by 6.27%, outperforming the Industrial Products sector's decline of 6.87% but lagging behind the S&P 500's loss of 4.77% [2] Upcoming Financial Results - Emerson Electric is set to announce its earnings on May 7, 2025, with an expected EPS of $1.42, representing a 4.41% increase from the same quarter last year [3] - The consensus estimate projects revenue of $4.38 billion, indicating a 0.1% rise from the equivalent quarter last year [3] Full Year Projections - For the full year, Zacks Consensus Estimates forecast earnings of $5.93 per share and revenue of $17.79 billion, showing increases of +8.01% and +1.73% respectively from the previous year [4] - Recent analyst estimate revisions suggest a positive outlook for the company's business operations and profit generation capabilities [4] Valuation Metrics - Emerson Electric is currently trading at a Forward P/E ratio of 17.7, which is lower than the industry's average Forward P/E of 19.95 [7] - The company's PEG ratio stands at 2.08, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.71 [7] Industry Context - The Manufacturing - Electronics industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Emerson Electric (EMR) closed at $99.57, with a daily increase of +0.91%, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Emerson Electric's shares declined by 12.21%, underperforming the Industrial Products sector's loss of 10.03% and the S&P 500's loss of 6.3% [2] Earnings Projections - Emerson Electric is set to release its earnings on May 7, 2025, with projected EPS of $1.42, indicating a 4.41% increase year-over-year [3] - The consensus estimate for revenue is $4.38 billion, reflecting a 0.1% rise from the same quarter last year [3] - For the entire fiscal year, earnings are projected at $5.93 per share and revenue at $17.79 billion, representing increases of +8.01% and +1.73% respectively from the prior year [4] Analyst Estimates and Valuation - Recent changes in analyst estimates for Emerson Electric are crucial as they indicate shifts in near-term business trends [5] - The Zacks Rank system, which evaluates estimate changes, currently rates Emerson Electric at 3 (Hold) [7] - Emerson Electric has a Forward P/E ratio of 16.63, which is lower than the industry average of 17.86, suggesting it is trading at a discount [8] Industry Context - Emerson Electric has a PEG ratio of 1.96, compared to the Manufacturing - Electronics industry's average PEG ratio of 1.62 [9] - The Manufacturing - Electronics industry is ranked 35 in the Zacks Industry Rank, placing it in the top 15% of over 250 industries [10]

Group 1: Company Performance - Emerson Electric Co. is experiencing solid momentum in its Intelligent Devices and Software and Control segments, with sales in the Final Control business increasing by 4% year over year in Q1 of fiscal 2025 [1] - The Measurement & Analytical business also saw a 3% year-over-year sales increase in the fiscal first quarter, supported by robust growth across geographies and strong backlog conversion levels [2] - The Software and Control segment reported a 2% year-over-year revenue increase in the fiscal first quarter, driven by strength in power and process end markets [2] Group 2: Future Outlook - Emerson has provided a bullish forecast for fiscal 2025, expecting net sales to increase approximately 1.5-3.5% year over year, with underlying sales anticipated to rise by 3-5% [3] Group 3: Acquisitions and Growth Strategy - The company is focused on expanding its market presence through acquisitions, having acquired all outstanding shares of Aspen Technology, Inc. in March 2025, increasing its ownership from 55% to around 57% [4] - In Q4 of fiscal 2023, Emerson completed acquisitions of Afag and Flexim, which enhanced its capabilities in factory automation and measurement, contributing positively to underlying sales growth by 9% in fiscal 2024 [5] Group 4: Shareholder Returns - Emerson's shareholder-friendly policies include $301 million in dividends and $899 million in share repurchases in the first three months of fiscal 2025, with plans to repurchase $2 billion in shares and pay out $1.2 billion in dividends for the fiscal year [6] Group 5: Challenges - Despite positive performance in certain segments, Emerson is facing challenges in its Safety & Productivity, Discrete Automation, and Test & Measurement businesses, with sales declines of 3%, 5%, and 6% respectively in the fiscal first quarter [9][10] - The company is undertaking restructuring measures to improve operational efficiency, which incurred costs of $12.9 million in the fiscal first quarter [11]

Core Insights - Emerson's annual NI Connect conference will take place from April 28-30, 2025, in Fort Worth, Texas, focusing on advancements in test and measurement technology [1][2] - The event will feature keynote presentations, live demonstrations, and educational sessions aimed at showcasing how integrated hardware and software approaches can enhance product testing and development [3][4] Event Details - The conference will gather engineers, researchers, and business leaders to discuss the future of test and measurement, including NI's Intelligent Test vision and advancements in platforms like NI LabVIEW, NI DAQ, and NI PXI [2][4] - Registration includes access to all sessions, certified training, meals, exhibitions, and social events [6] Keynote Speakers and Topics - Archer Aviation will discuss the use of NI's hardware-in-the-loop simulation platforms for validating their eVTOL aircraft, Midnight [7] - Milwaukee Tool will showcase their transformation of test automation for 24/7 tool life testing [7] - Qualcomm will present on standardizing NI's PXI-based test platforms for scalable validation of RF and PMIC devices [7] - The University of Texas will share insights on their student-led rocket engineering projects utilizing LabVIEW [7] Additional Highlights - Keynote presentations will feature leaders from Fortune 500 companies sharing success stories on how NI's test tools provide a strategic advantage [8] - New product announcements for NI DAQ, LabVIEW, and PXI will be made during the conference [8] - Networking opportunities will be available for attendees to engage with industry experts and explore best practices in advanced test and measurement [8]

Company Overview - Emerson Electric Co. is a diversified global engineering and technology company headquartered in St. Louis, MO, offering a wide range of products and services across consumer, commercial, and industrial markets [11]. - The company features a diverse portfolio of brands including Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, ASCO, Greenlee, Klauke, AMS, and DeltaV [11]. Investment Ratings - Emerson Electric is currently rated as a 2 (Buy) on the Zacks Rank, indicating a positive outlook for the stock [11]. - The company has a VGM Score of B, suggesting it has attractive value, growth, and momentum characteristics [11][12]. Growth Potential - Emerson Electric is positioned as a top pick for growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 8.7% for the current fiscal year [12]. - In the last 60 days, seven analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.06 to $5.97 per share [12]. - The company has demonstrated an average earnings surprise of 4.3%, indicating a strong performance relative to expectations [12].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Emerson Electric (EMR), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4][12]. Brokerage Recommendations - Emerson Electric has an average brokerage recommendation (ABR) of 1.65, indicating a consensus between Strong Buy and Buy, based on recommendations from 24 brokerage firms [2]. - Out of the 24 recommendations, 17 are Strong Buy and 1 is Buy, which accounts for 70.8% and 4.2% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential [4]. - Analysts from brokerage firms often exhibit a positive bias due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Zacks Rank as an Alternative - The Zacks Rank, a proprietary stock rating tool, categorizes stocks into five groups based on earnings estimate revisions, which are strongly correlated with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11]. Current Earnings Estimates for Emerson Electric - The Zacks Consensus Estimate for Emerson Electric has increased by 0.2% over the past month to $5.97, reflecting analysts' growing optimism about the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Emerson Electric, suggesting a positive outlook for the stock [13].

Company Overview - Emerson Electric Co. is a diversified global engineering and technology company headquartered in St. Louis, MO, offering a wide range of products and services across consumer, commercial, and industrial markets [11] - The company features a diverse portfolio of brands including Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, ASCO, Greenlee, Klauke, AMS, and DeltaV [11] Investment Ratings - Emerson Electric is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [11] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 8.7% for the current fiscal year [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.03 to $5.97 per share [12] - Emerson Electric has an average earnings surprise of 4.3%, suggesting a positive trend in earnings performance [12]

Group 1: Acquisition Details - Emerson Electric Co. has acquired all outstanding shares of Aspen Technology, Inc., increasing its ownership from 57% to 100% [1][3] - The acquisition was structured as an all-cash tender offer, valuing AspenTech at a market capitalization of $17.0 billion and an enterprise value of $16.8 billion, with Emerson offering $265 in cash for each remaining share [3] Group 2: Strategic Rationale - The acquisition aligns with Emerson's strategy to enhance operations and expand market presence, boosting its automation portfolio and enabling entry into new markets [4] - AspenTech's asset optimization software solutions will advance Emerson's capabilities in software-defined control under industrial automation [4] Group 3: Existing Business Performance - Emerson is experiencing healthy demand across most end markets, with sales in the process and hybrid industries up 2% in the first quarter of fiscal 2025, and expected to grow mid-single digits driven by energy, LNG, and power markets [5] - The Intelligent Devices and Software and Control segments are performing strongly, with sales in the Final Control business increasing 4% year over year in the fiscal first quarter [6] - The Measurement & Analytical business saw sales rise 3% year over year in the fiscal first quarter, supported by robust growth across geographies [7] Group 4: Challenges - There is softness in the Americas and Europe regions within the Safety & Productivity business, with sales in the Discrete Automation business declining 5% in the first quarter of fiscal 2025 [8] - Emerson operates in a highly competitive market, facing competition from companies like Ingersoll Rand plc, Rockwell Automation, and Franklin Electric Co., Inc. [9]