Emerson Getting Better, But The Market Is In Step
Stephen Simpson, CFA
Stephen Simpson, CFA
Expectations Improving Faster Than Results At Emerson
Stephen Simpson, CFA
Stephen Simpson, CFA
May 5, 2015, 7:58 AM
- Adjusted earnings fell 16% to $0.65 per share vs. $0.77 in the comparable quarter a year ago.
- Revenue by segment: Process Management -3%; Industrial Automation -16%; Network Power -9%; Climate Technologies -6%; Commercial & Residential Solutions +1%.
- Share repurchases accelerated to $869M during the quarter.
- "Emerson faced significant challenges and market headwinds in the second quarter as economic conditions affected demand across our businesses," said CEO David Farr. As a result of the rapid weakening of both orders and sales in Q2, we will further accelerate restructuring.
- The company now expects net sales to decline -7% to -5% in full-year 2015, and anticipates reported earnings per share of $4.17-$4.32 vs. a previous range of $4.50-$4.60.
- FQ2 results
- EMR -1.7% premarket
May 5, 2015, 7:26 AM
- Emerson Electric (NYSE:EMR): FQ2 EPS of $0.65 misses by $0.11.
- Revenue of $5.4B (-7.1% Y/Y) misses by $20M.
May 4, 2015, 5:30 PM
- ABMD, ACTA, AFSI, ALLT, AMAG, ANIP, BBEP, BBW, BLMN, BPI, CIE, CLDT, CRTO, CVLT, CYNO, DIS, DISCA, DTV, EIGI, EL, EMR, ENR, EXH, EXLP, GCAP, GLDD, GLT, GTN, GVA, H, HCA, HCP, HEP, HRC, HRS, HW, ICE, ISIS, K, KEM, KLIC, KMT, LPX, MDC, MDCO, MMP, MNK, MSO, NBL, NGLS, NNN, [[NTi]], NWN, ODP, OZM, PRIM, SABR, SALE, SBH, SCOR, SGNT, SMG, SNSS, SPAR, SRE, SSE, STWD, TDG, TECH, TGH, TRW, TW, UAM, USAK, VLP, VMC, VSH, WEC, WNR, YORW, ZTS
Apr. 23, 2015, 5:49 PM
- At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
- HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
- These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
Feb. 3, 2015, 12:48 PM
- Emerson Electric (NYSE:EMR) declares $0.47/share quarterly dividend, in line with previous.
- Forward yield 3.2%
- Payable March 10; for shareholders of record Feb. 13; ex-div Feb. 11.
Feb. 3, 2015, 8:10 AM
- Net earnings attributable to common shareholders of 525M vs. $462M in the comparable quarter a year ago. Excluding charges, earnings rose to $0.75 per share from $0.65 per share last year.
- Gross profit margin expanded 90 bps to 40.8%.
- Revenue by segment: Process Management +3%; Industrial Automation flat; Network Power -14%; Climate Technologies +15%; Commercial & Residential Solutions +3%.
- The company expects a reported sales decline of 1%-4% in full-year 2015, and anticipates reported earnings per share of $4.50-$4.60.
- FQ1 results
- EMR 0.9% premarket
Feb. 3, 2015, 7:06 AM
- Emerson Electric (NYSE:EMR): FQ1 EPS of $0.75 beats by $0.03.
- Revenue of $5.58B (-0.5% Y/Y) misses by $10M.
Feb. 2, 2015, 5:30 PM
Jan. 22, 2015, 8:22 AM
Jan. 13, 2015, 10:58 AM
Dec. 15, 2014, 7:42 AM
- Emerson Electric (NYSE:EMR) has reached a deal to sell its power-transmission solutions business to Regal Beloit (NYSE:RBC) for $1.4B in cash.
- Emerson says it will use the proceeds for an incremental share buyback during its fiscal 2015.
- Previously: WSJ: Emerson Electric nears $1.2B sale of unit to Regal Beloit (Dec. 12 2014)
- RBC +5.8% premarket
Dec. 12, 2014, 5:08 PM
- Emerson Electric (NYSE:EMR) is near a sale of its power transmission solutions unit to Regal Beloit (NYSE:RBC) in a deal that would value the business at more than $1.2B, WSJ reports.
- The unit designs and produces couplings, bearings, gearing and drive components, among other items, for automotive, aeronautic and industrial use.
Dec. 1, 2014, 5:49 PM
- General Electric (NYSE:GE) was the day's biggest loser among the Dow 30, as J.P. Morgan analysts Stephen Tusa and Rajat Gupta include GE among among industrial companies confronted with big risks through their exposure to oil drilling.
- "The game has changed," the analysts say in now seeing a spread in EPS growth between those that have material exposure to energy and those that do not to a range of ~800 bps; regarding GE, JPM drops oil/gas growth to -2% from +5% and power/water growth to zero from +3% on the back of distributed power weakness, which it pegs at mid-single digit declines for two years, along with the onset of a decline in gas turbines.
- The firm also downgrades Dover (NYSE:DOV) to Underweight, reaffirms its Underweight on Rockwell Automation (NYSE:ROK), and continues to avoid Emerson Electric (NYSE:EMR), SPX Corp. (NYSE:SPW) and GE; it still likes a few with oil/gas exposure, such as Pentair (NYSE:PNR) given ongoing execution/margin potential, and Honeywell (NYSE:HON), given less direct impact and a strong balance sheet story.
Nov. 24, 2014, 3:43 PM
- Twenty-two spinoffs have been completed in 2014, the most in a decade, and another 28 have been announced. Among the catalysts are activist investors, so Credit Suisse screened for companies with multiple business segments, slow growth, and stocks trading for lower multiples than peers, in other words, "good, quality companies that are struggling to grow."
- The list is heavy on big media names like Time Warner (NYSE:TWX) and Twenty-First Century Fox (NASDAQ:FOXA), big tech like Oracle (NYSE:ORCL), Symantec (NASDAQ:SYMC), and IBM, and big industry like Lockheed Martin (NYSE:LMT), Ingersoll-Rand (NYSE:IR), and Raytheon (NYSE:RTN), but just two financial names - Travelers (NYSE:TRV) and Torchmark (NYSE:TMK).
- The rest: MO, CA, WU, DPS, PBI, SJM, HRS, SWK, EMR, WLP, MAT, GE, SNA, LLL, ITW, STJ, PDCO, HPQ, DLPH, HAS, NAVI, GME, CBS, JNJ, SLB.
Nov. 4, 2014, 2:40 PM
- Higher for most of the session following an earnings beat, Emerson Electric (EMR -0.3%) slides into the red as management - speaking on the earnings call (live right now on Seeking Alpha) says if oil stays at these levels (below $80 per barrel) for another 30-60 days, it will negatively impact results in a material way.
- Previously: Emerson Electric beats by $0.07, revenue in-line
- Previously: Energy sector slammed alongside crude oil
Nov. 4, 2014, 8:05 AM
- Net earnings attributable to common shareholders of 410M vs. $795M in the comparable quarter a year ago. Excluding charges, earnings rose to $1.30 per share from $1.18 per share last year.
- Revenue by segment: Process Management +8%; Industrial Automation +5%; Network Power -20%; Climate Technologies +7%; Commercial & Residential Solutions +5%.
- Cash returned to shareholders through dividends and share repurchase exceeded 60% for the fourth consecutive year.
- Year-end backlog of $6.7B.
- The company expects underlying sales to grow between 4-5% next year, better than in 2014. Due to unfavorable currency translation and the potential power transmission divestiture deducting 2% each, reported sales are expected to change 0-1%. Profitability is expected to continue to improve modestly.
- FQ4 results
Emerson Electric Co. manufactures and develops process controls systems, valves and analytical instruments. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies and Commercial & Residential Solutions. The Process Management segment... More
Sector: Industrial Goods
Industry: Industrial Equipment & Components
Country: United States
Other News & PR