In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from EMR and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported $0.74 EPS, failing to meet analyst estimates of $0.80.
The consensus EPS estimate is $1.00 based on 19 analysts' estimates, up from $0.90 a year ago. Revenue estimates are $6.61B, up from $6.29B a year ago. The median target price by analysts for the stock is $54.50.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On March 15, 2012, Oppenheimer reiterated Outperform rating for the company.
- On July 11, 2012, Pharmaceutical company Jubilant Life Sciences has chosen process automation technologies and services from Emerson Process Management, a global business of Emerson, to help increase productivity, reduce costs, and improve efficiency at three manufacturing plants in Gujarat state, India.
- On May 1, 2012, Emerson Electric Co revised fiscal 2012 outlook and expects to report the sales growth of 2% to 4% and earnings per share (EPS) $3.35 to $3.50. The company reported revenues of $24.2 billion in fiscal 2011.
- On April 2, 2012, Emerson Electric Co announced it has acquired the Marine Container and Boiler business of Johnson Controls, Inc., enabling Emerson Climate Technologies to expand its refrigeration technology and solutions offerings in the global transportation sector.
- On February 7, 2012, Emerson Electric Co announced that for fiscal 2012, it expects to report the sales growth of 2% to 4% and earnings per share $3.45 to $3.60. The company reported revenues of $24.2 billion in fiscal 2011.
ABB (ABB), General Electric (GE), Honeywell (HON), and United Technologies (UTX) are considered competitors for Emerson Electric and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.
Competitors' Latest Development
- On August 2, 2012, ABB Ltd announced that it has won an order worth approximately USD 55 million to supply three new substations and transmission infrastructure for the Brazilian utility Eolicas do Sul. The order was booked in the second quarter of 2012.
- On August 1, 2012, General Electric Co announced the acquisition of PRESENS, a provider of pressure, temperature and flow measurement solutions. The acquisition expands GE's portfolio of sensing solutions and will be part of the Company's Measurement & Control business within GE Oil & Gas. Terms of the transaction were not disclosed.
- On July 26, 2012, iBio Inc and GE Healthcare, the healthcare business of General Electric Co announced a new global alliance to commercialize plant-based technologies for the manufacture of biopharmaceuticals and vaccines.
- On July 26, 2012, United Technologies Corp announced it has completed its acquisition of Goodrich Corporation. Goodrich will be combined with Hamilton Sundstrand to create the new UTC Aerospace Systems business unit, headquartered in Charlotte, N.C.
- On July 26, 2012, United Technologies Corp announced that for fiscal 2012, it expects sales of $58 to $59 billion and earnings per share of $5.25 to $5.35, versus prior expectation of $5.30 to $5.50.
- On July 26, 2012, United Technologies Corp announced it has reached agreement to sell its Milton Roy Co., Sullair Corp. and Sundyne Corp. industrial products businesses to BC Partners and The Carlyle Group (CG) for $3.46 billion.
- On July 24, 2012, ABB Ltd announced that it has won a contract worth approximately USD 100 million to build a new condensate plant for Petroleum Development Oman in Oman.
- On July 24, 2012, Reuters reported that Carlyle Group LP and BC Partners Ltd have joined forces and are in advanced talks to buy United Technologies Corp's industrial businesses, according to three people familiar with the matter, in a deal that could be valued at more than $3.5 billion.
- On July 23, 2012, United Technologies Corp announced it has reached agreement to sell its Rocketdyne unit, currently part of Pratt & Whitney, to GenCorp Inc. for $550 million.
- On July 20, 2012, General Electric Co announced it has signed a more than USD600 million, 22-year contractual services agreement with Chevron Australia Pty LTD to maintain the compression trains, power generation and associated equipment that will be at the heart of the Chevron-operated Gorgon Project off the northwestern coast of Australia.
- On July 20, 2012, General Electric Co announced that it is confident in double-digit EPS growth expectations for fiscal 2012. The company reported EPS of $1.37 in fiscal 2011.
- On July 20, 2012, General Electric Co announced that it will reorganize its Energy business into three standalone businesses effective in the fourth quarter of 2012. The Energy headquarters organizational layer will be phased out by the end of 2012.
- On July 19, 2012, Dow Jones reported that ABB Ltd has agreed to buy Amarcon BV, a Dutch company that develops and markets software solutions for the shipping industry, as it taps into the fast-growing energy-optimization markets.
- On July 19, 2012, Reuters reported that United Technologies Corp. is in final discussions to sell its Rocketdyne business to Gencorp Inc, a maker of aerospace propulsion systems.
- On July 19, 2012, Sikorsky Aircraft Australia Limited announced the signing of a four-year agreement with the Australian Defence Force for ongoing logistics and engineering support for the Commonwealth of Australia's fleet of BLACK HAWK (S-70A) and SEAHAWK (S-70B) helicopters.
- On July 18, 2012, Honeywell International Inc announced that for fiscal 2012, it expects sales of $37.8-$38.4 billion, compared to prior guidance range of $38.0-$38.6 billion and EPS from continuing operations to be in the range of $4.40-$4.55, compared to prior guidance range of $4.35-$4.55. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $38.4 billion and EPS of $4.49 for fiscal 2012.
- On July 16, 2012, General Electric Co's GE Aviation announced that they signed an agreement with The Boeing Company potentially worth up to $180 million to provide the mission control system for the U.S. Air Force's KC-46A tanker.
- On July 16, 2012, Oman Air has selected Hamilton Sundstrand Corporation for a long-term agreement to be the maintenance provider for the APS2300 Auxiliary Power Unit on its existing fleet of five Embraer 175 series aircraft.
- On July 14, 2012, Reuters reported that General Electric Co Secured a medical equipment deal with two hospitals in Myanmar on July, 14 2012, becoming the first U.S. company to restart business in the long-isolated country since Washington eased sanctions that week.
- On July 12, 2012, ABB Ltd announced that it has won orders worth around USD 80 million for power engineering and medium voltage drives to the new facility for the processing of natural gas in the vicinity of Darwin in Australia.
- On July 11, 2012, ABB Ltd announced that it is investing approximately SEK 30 million in a new factory in Poland to produce components for power and distribution transformers.
- On July 11, 2012, Hamilton Sundstrand Corporation, a subsidiary of United Technologies Corporation, announced that it has awarded a multi-year Overhaul & Repair contract from the U.S. Army for BLACK HAWK helicopter T700 fuel controls, with initial delivery orders starting in 2012 and covering a period of performance through 2017.
- On July 11, 2012, Dow Jones reported that Pratt & Whitney, a United Technologies Corp. company announced that it has signed a memorandum of understanding for an exclusive maintenance services agreement with Alba Star Airlines to provide engine overhaul services on the airline's fleet of CFM56-3 engines.
- On July 10, 2012, Dow Jones reported that General Electric Co plans to spend an additional $70 million to expand its advanced battery factory in upstate New York. The plant, located in Schenectady, N.Y., produces GE's Durathon battery products, which are half the size of conventional lead-acid batteries but last about 10 times longer.
- On July 10, 2012, Mitsubishi Heavy Industries, Ltd. announced that the judgment of the lawsuit, which the Company filed against General Electric, for patent infringement on wind turbine technology, on May 21, 2010.
- On July 10, 2012, Sikorsky Aerospace Services (SAS) announced the expansion of an existing contract that doubles the size of the in-country maintenance support team for the Colombian Army UH-60 BLACK HAWK fleet.
- On July 9, 2012, Duro Felguera SA announced its participation in collaboration with General Electric Co and a local entity Fainser in a turn-key project to build a gas-turbine electric power plant in Vuelta de Obligado, Argentina.
- On July 9, 2012, Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and the enforcement of federal antitrust laws announced that it is investigating potential wrongdoing at United Technologies Corporation.
- On July 9, 2012, United Technologies Corp.'s subsidiary Hamilton Sundstrand Corporation and Japan Airlines Co., Ltd. (JAL) agreed to extend their exclusive repair agreement on Airlines on Boeing 767/777 and MD90 fleets.
- On July 9, 2012, Sundstrand Corporation, the system supplier to the Boeing 787 Dreamliner, has ramped up its operations and its supply chain to support Boeing's rate readiness needs for 787 production.
- On July 9, 2012, Hamilton Sundstrand Corporation, a subsidiary of United Technologies Corporation, signed a long-term agreement with Fokker Services to provide spare parts to support components repaired by Fokker workshops through 2016.
- On July 9, 2012, LifePort, Inc. announced that it has received a subcontract from L-3 Platform Integration in support of a 747-8 Head-of-State Completion Project. LifePort will equip the upper deck of the aircraft with customized cabinets, partitions and a lavatory.
- On July 9, 2012, Sikorsky Aerospace Services (SAS) announced an exclusive sales and distribution agreement with Northrop Grumman Corporation's Italy-based subsidiary, Northrop Grumman Italia, to equip BLACK HAWK utility aircraft with its NAVEX-12 Air Navigation System.
- On July 6, 2012, Reuters reported that United Technologies Corp. is set to win EU approval for its $16.5 billion purchase of Goodrich Corporation after agreeing to sell assets in the United States and Britain.
- On July 4, 2012, ABB Ltd announced that it has received order worth approximately USD 55 million from a Canadian energy company BC Hydro for FACTS-solutions (flexible alternating current transmission systems), which is to increase the transmission capacity in both the existing and new power lines.
- On July 4, 2012, Dow Jones reported that General Electric Co is suspending construction of a thin-film solar panel factory in Colorado, Bloomberg News reported. Danielle Merfeld, general manager of solar technologies, said in an interview that work would stop for at least 18 months.
- On July 3, 2012, Reuters reported that EverBank Financial Corp said it would buy General Electric Capital's Business Property Lending Inc division for $2.51 billion to boost its ability to lend to small and mid-size companies, driving up its shares more than 4%. The latest deal includes about $2.44 billion of performing commercial loans, origination and servicing platforms, and servicing rights on $3.1 billion of loans securitized by GE Capital.
- On July 2, 2012, ABB Ltd announced that it has received order worth approximately USD 120 million for a power plant and two 400/132 kilowatt substations to provide power to the region of Kurdistan in northern Iraq.
- On July 2, 2012, EDAC Technologies announced that it has revised its facility relocation plan and has purchased a 293,000 square foot manufacturing facility located in Cheshire, Conn. from United Technologies Corporation.
- On July 2, 2012, General Electric Co And OJSC Rosneft announced that it has signed a memorandum of understanding that lays the foundation for the two companies to jointly evaluate and develop commercial opportunities in oil and gas exploration and production in the Russian Federation.
- On July 2, 2012, General Electric Co announced that Swedish energy developer Triventus Wind Power AB will use GE's wind turbine technology to power a new 27.5-megawatt wind farm project being built near Falkenberg on Sweden's west coast.
- On June 28, 2012, ABB Ltd announced that it has won an order worth USD 80 million from Samsung Heavy Industries. The order is for delivery of energy-efficient drive systems, engines and electrical systems to five drilling vessels and two tankers for liquefied natural gas being built at Samsung's shipyard in Korea.
- On June 26, 2012, Dow Jones reported that ABB Ltd it received an order worth around $75 million from Iraq's Ministry of Electricity to extend an existing transmission grid in the country.
- On June 26, 2012, Servicesource International Inc announced that General Electric Co's GE Healthcare has expanded its partnership with ServiceSource in Asia-Pacific to drive renewal of recurring service contracts for both small and large scale medical equipment.
- On June 21, 2012, NK Rosneft' OAO (Rosneft) announced that on June 21, 2012 Mr. I. Sechin, Rosneft President, and Mr. John Krenicki, General Electric Co Vice Chairman President and CEO of GE Energy, and Mr. Cristiano Tortelli, GE Energy CEO for CEE, Russia and CIS, signed a Memorandum of Understanding and a Cooperation Agreement.
- On June 18, 2012, Reuters reported that United Technologies Corp. is looking to sell power generation assets within its Pratt and Whitney subsidiary in a deal that could fetch around $1 billion, according to three people familiar with the matter.
- On June 16, 2012, Reuters reported that General Electric Co aims to buy a medium-sized business in Germany in the next six months to expand its technological footprint, German daily Sueddeutsche Zeitung reported, citing a manager at the U.S. conglomerate.
- On June 13, 2012, United Technologies Corp. announced that the Board of Directors declared, effective July 5, an 11.5% increase in its third quarter dividend to $0.535 per common share.
- On June 13, 2012, United Technologies Corp. announced that it has successfully priced its offering of equity units. Net proceeds of the offering are expected to be used primarily to pay a portion of the cash consideration for the previously announced acquisition of Goodrich Corporation.
- On June 12, 2012, General Electric Co announced that it had secured an order for GBP3.25 million from General Dynamics UK for subsystems required for the Demonstration Phase for the Scout Specialist Vehicle family of platforms for the British Army for which General Dynamics UK is currently on contract.
- On June 12, 2012, United Technologies Corp. announced an offering of $1.00 billion of equity units. Net proceeds of the offering are expected to be used primarily to pay a portion of the cash consideration for the previously announced acquisition of Goodrich Corporation.
- On June 8, 2012, General Electric Co announced that it declared a $0.17 per share dividend on the outstanding common stock of the Company payable on July 25, 2012, with a record date of June 25, 2012 and ex-dividend date of June 21, 2012.
- On June 6, 2012, General Electric Co's GE Oil & Gas announced that it will supply advanced turbocompression technology for the PETRONAS LNG Train 9 project, which will add 3.6 million tons per annum (mtpa) to the existing 25.7 mtpa production capacity of the PETRONAS LNG Complex in Bintulu, Sarawak, Malaysia.
- On June 5, 2012, Sotkamo Silver AB announced that it has signed an agreement with ABB Ltd's subsidiary ABB Oy, Process Industry, Finland about construction of a 22 kilometers long power transmission line to Taivaljarvi Silver Mine.
- On June 4, 2012, Honeywell International Inc announced that it has acquired INNCOM, a Connecticut-based, privately held manufacturer of advanced software-based energy management solutions and in-room controls for lodging, healthcare and educational institutions.
- On May 30, 2012, ABB Ltd announced that together with Green, information and communications technology service provider in Switzerland, it has announced the opening of Green's new Zurich-West data center expansion based on direct current technology.
- On May 25, 2012, United Technologies Corp. announced that it has successfully priced an offering of senior notes consisting of: $1.0 billion aggregate principal amount of 1.200% senior notes due 2015; $1.5 billion aggregate principal amount of 1.800% senior notes due 2017; $2.3 billion aggregate principal amount of 3.100% senior notes due 2022; $3.5 billion aggregate principal amount of 4.500% senior notes due 2042; $1.0 billion aggregate principal amount of floating rate senior notes due 2013; and $500 million aggregate principal amount of floating rate senior notes due 2015.
- On May 24, 2012, Reuters reported the pricing of a bond offering of almost $10 billion from United Technologies Corp. Up to $38 billion of orders were placed with underwriters on the deal, according to market sources.
- On May 22, 2012, United Technologies Corp. announced that for fiscal 2012, it remain confident on guidance and will deliver EPS of $5.30 to $5.50, sales will be $61 billion to $62 billion, including Goodrich.
- On May 22, 2012, Reuters reported that United Technologies Corp. is confident that its pending $16.5 billion takeover of aircraft components maker Goodrich Corp will close in July, despite an ongoing European Union antitrust review of the deal.
- On May 16, 2012, General Electric Co announced that it is pursuing acquisitions of two underground mining equipment manufacturers in support of the global expansion of its mining business.
- On May 15, 2012, Reuters reported that private equity firms TPG Capital and Carlyle Group LP are separately considering bids for United Technologies Corp.'s industrial units that make pumps and compressors valued at $3.5 billion to $4 billion.
- On May 9, 2012, Biosense Webster Inc announced the execution of strategic collaboration agreements with two global imaging companies, General Electric Co's GE Healthcare and Siemens AG's Siemens Healthcare.
- On May 7, 2012, General Electric Co And China Xd Electric Co announced the formation of a new partnership to deliver a full-line of electric transmission and distribution and grid automation solutions to customers around the world.
The stock has a market capitalization of $34.78B and is currently trading at $47.41 with a 52 week range of $39.50-$53.78. The stock's year-to-date performance has been 3.40%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.