Latest news with #AspenTech
Globe and Mail
4 days ago
- Business
- Globe and Mail
Emerson Gears Up to Report Q3 Earnings: What's in Store?
Emerson Electric Co. EMR is likely to witness bottom and top-line growth when it reports third-quarter fiscal 2025 (ended June 30, 2025) results on Aug. 6, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.58 billion, indicating growth of 4.6% from the prior-year quarter's figure. The consensus mark for earnings is pinned at $1.51 per share, remaining steady in the past 60 days. The figure indicates a jump of 5.6% from the prior-year figure. The company's bottom line surpassed the Zacks Consensus Estimate by 0.4% in the last reported quarter. EMR beat on earnings in each of the trailing four quarters, delivering an average surprise of 3.4%. Let's see how things have shaped up for Emerson prior to the announcement. Factors Likely to Have Shaped EMR's Quarterly Performance Strength across Emerson's final control business, driven by solid momentum in the power end markets, is likely to have benefited the top-line performance of its Intelligent Devices segment in the fiscal third quarter. Robust growth across the Asia, Middle East & Africa regions is likely to have aided the Measurement & Analytical business. We expect the Intelligent Devices segment's revenues to increase 3.4% from the year-ago quarter's level to $3.10 billion. Strength in the Control Systems & Software business, driven by solid momentum in the power and process end markets, is likely to have augmented the performance of the Software and Control segment. Solid momentum in AspenTech is also expected to have acted as a tailwind for the segment. We anticipate the segment's revenues to increase 7.5% year over year to $1.50 billion. The company has always been focused on expanding its product offerings and market presence through buyouts. In March 2025, Emerson acquired the remaining shares of AspenTech, making it a wholly owned subsidiary. This move strengthens the company's automation portfolio and enhances its software-defined control capabilities. EMR acquired Afag and Flexim in the fourth quarter of fiscal 2023 (ended September 2023). The buyout of Afag boosted Emerson's capabilities in factory automation, helping it expand into lucrative end markets, including battery manufacturing, automotive, packaging, medical, life sciences and electronics. The acquisition of Flexim added to its existing flow measurement positions in coriolis, differential pressure, magmeter and vortex flow measurement and expanded its automation portfolio and measurement capabilities. The buyouts are expected to have boosted EMR's top line in the quarter. However, escalating costs and expenses related to its acquisition and restructuring-related actions are likely to have affected EMR's margin performance. Also, given the company's substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability. Earnings Whispers Our proven model predicts an earnings beat for EMR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. Earnings ESP: EMR has an Earnings ESP of +0.39% as the Most Accurate Estimate is pegged at $1.52 per share, which is higher than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks before they're reported with our Earnings ESP Filter. Zacks Rank: EMR currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Another Company Dover Corporation DOV reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago. Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion. Other Stocks to Consider Here are some other companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle. Parker-Hannifin Corporation PH has an Earnings ESP of +0.24% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter fiscal 2025 (ended June 2025) results on Aug. 7. Parker-Hannifin's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.5%. Eaton Corporation plc ETN has an Earnings ESP of +0.93% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on Aug. 5. Eaton's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.9%. Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Emerson Electric Co. (EMR): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report
Yahoo
20-07-2025
- Business
- Yahoo
Stephens Raises Emerson (EMR) Price Target, Maintains Equal Weight Rating
Emerson Electric Company (NYSE:EMR) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Stephens analyst Tommy Moll has raised the price target on Emerson Electric Company (NYSE:EMR) to $145 from $130, maintaining an Equal Weight rating in anticipation of the company's upcoming second-quarter earnings release. Engineers analyzing a complex network of process control software and systems. In a research note issued to investors, Moll acknowledged lingering concerns surrounding tariff policy and its impact on the electrical equipment and multi-industry sectors. However, he noted that sentiment appears to be improving compared to the first quarter. Key indicators, such as pricing discipline and order trends, are showing resilience. 'Price realization is largely tracking expectations, and underlying demand has proven more stable than initially forecast,' Moll stated. He also pointed out that Emerson's diversified end-market exposure, including energy, process automation, and climate technologies, has helped buffer macroeconomic volatility. Emerson has increasingly positioned itself at the forefront of industrial automation, bolstered by its acquisition of AspenTech and investments in intelligent control systems. These strategic moves reflect the company's broader push into digital transformation initiatives, especially in sectors like chemical processing, manufacturing, and infrastructure. The upward revision comes as investors look for clarity on how global supply chain normalization and evolving trade dynamics will affect capital spending. Emerson is scheduled to report Q2 earnings in early August. Emerson Electric Company (NYSE:EMR) drives industrial automation through advanced control systems, sensors, and software that optimize manufacturing and energy processes across global industries. While we acknowledge the potential of EMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Non-Mega Cap NASDAQ Stocks to Buy Right Now and 13 Cheap Stocks Under $50 to Buy Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
11-06-2025
- Business
- Yahoo
EMR Q1 Earnings Call: Demand Resilience, Tariff Mitigation, and Integration Progress Drive Outlook
Engineering and automation solutions company Emerson (NYSE:EMR) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 1.3% year on year to $4.43 billion. Guidance for next quarter's revenue was better than expected at $4.6 billion at the midpoint, 1.4% above analysts' estimates. Its non-GAAP profit of $1.48 per share was 4.6% above analysts' consensus estimates. Is now the time to buy EMR? Find out in our full research report (it's free). Revenue: $4.43 billion vs analyst estimates of $4.38 billion (1.3% year-on-year growth, 1.1% beat) Adjusted EPS: $1.48 vs analyst estimates of $1.41 (4.6% beat) Adjusted EBITDA: $1.24 billion vs analyst estimates of $1.21 billion (28% margin, 2.9% beat) Revenue Guidance for Q2 CY2025 is $4.6 billion at the midpoint, above analyst estimates of $4.54 billion Management slightly raised its full-year Adjusted EPS guidance to $5.98 at the midpoint Operating Margin: 19.8%, up from 17.1% in the same quarter last year Market Capitalization: $71.4 billion Emerson's first quarter results were shaped by steady demand in its Process and Hybrid businesses, sequential improvement in Discrete markets, and successful execution of its supply chain and cost management strategies. CEO Lal Karsanbhai highlighted that underlying orders grew across all regions, with Process and Hybrid up 6% and Discrete businesses turning positive, led by an 8% uptick in Test and Measurement. The integration of AspenTech and completion of portfolio transformation also influenced margins and operational performance, with margin expansion attributed to favorable product mix and synergy realization from recent acquisitions. Management noted, 'We have conviction in our process and hybrid markets and are seeing strong indicators for a meaningful second half discrete sales recovery.' Looking ahead, Emerson's guidance reflects expectations for continued mid-single digit growth in Process and Hybrid markets, supported by a healthy project backlog and sustained capital investment in sectors like energy, LNG, and life sciences. Management emphasized the company's ability to offset incremental costs from new tariffs through targeted pricing actions, production reconfiguration, and ongoing supply chain regionalization. As CEO Lal Karsanbhai explained, 'We are mitigating these impacts through targeted surcharges and pricing actions, production reconfiguration using our global manufacturing footprint and additional supply chain regionalization initiatives.' The company also anticipates a meaningful recovery in Discrete businesses in the second half of the year, underpinned by improving order trends and easier comparisons. Management attributed first quarter performance to solid execution in core markets, margin benefits from portfolio changes, and proactive measures to address external cost pressures, including tariffs. Process and Hybrid demand resilience: Emerson's Process and Hybrid businesses benefited from robust project activity in energy, LNG, and life sciences, with significant capital investment in regions such as the Middle East, Africa, and Asia. Management cited a healthy $11.4 billion project funnel and highlighted the importance of maintenance, repair, and operations (MRO), which represented over 60% of sales in the quarter. Discrete segment recovery underway: The Discrete businesses, which supply automation equipment for manufacturing, saw underlying orders turn positive, led by Test and Measurement's broad-based growth and strength in aerospace and defense. However, segments linked to automotive and factory automation, especially in China and Europe, remained pressured. AspenTech integration progressing: The completion of the AspenTech acquisition was a key milestone. Management expects the transaction to be modestly accretive to adjusted EPS in 2025, with plans for $100 million in cost synergies by 2028. AspenTech's annual contract value (ACV) grew 11% year-over-year, driven by digital grid and manufacturing software demand. Tariff mitigation actions: Emerson faces approximately $245 million in gross tariff impacts for 2025 but expects to fully offset these through pricing actions, surcharges, and operational changes. The company's supply chain regionalization strategy allows flexibility to shift production and minimize cost exposure. Retention of Safety and Productivity business: Following a strategic review, Emerson decided to retain its Safety and Productivity segment, which comprises about 8% of sales. Management pointed to its market-leading profitability, cash generation, and alignment with reshoring and U.S. manufacturing trends as reasons for keeping the business in-house. Management's outlook centers on continued strength in Process and Hybrid markets, discrete segment recovery, and mitigation of tariff-related headwinds through strategic actions. Sustained investment in core markets: Emerson projects ongoing capital spending in energy, LNG, and life sciences to drive mid-single digit growth in Process and Hybrid businesses. Management referenced a strong backlog and new project awards as supportive of this outlook, while noting gradual improvement in China and sequential gains in Europe. Discrete recovery and end-market trends: The company expects Discrete businesses to deliver high single digit growth in the second half, aided by easier year-over-year comparisons and improving demand in Test and Measurement, packaging, and MRO segments. Factory automation and automotive end markets remain areas of caution, particularly in China and Germany. Tariff and cost management risks: Emerson's ability to offset new tariff costs through pricing and operational changes is a key factor for profitability. Management acknowledged that failure to fully mitigate these costs or unforeseen macroeconomic pressures—such as persistent weakness in China or continued softness in factory automation—could affect results. In the coming quarters, the StockStory team will track (1) the pace and breadth of discrete segment recovery, particularly in Test and Measurement and factory automation, (2) Emerson's ability to fully implement its tariff mitigation actions without impacting customer demand, and (3) the realization of cost synergies and growth targets from the AspenTech integration. Progress on expanding in core sectors like LNG, life sciences, and energy transition will also be a key indicator of execution against the company's strategic plan. Emerson Electric currently trades at a forward P/E ratio of 20.5×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
22-05-2025
- Business
- Forbes
$40 Billion Of M&A In 4 Years But More ‘May' Follow, Says Emerson COO
(AP Photo: Tom Gannam) Despite having made $40 billion worth of acquisitions over the last four years, global industrial automation and technology giant Emerson (NYSE: EMR) may not be quite done yet, according to the company's chief operating officer Ram Krishnan. Some of the company's recent big ticket buys include automated test equipment and virtual instrumentation software company National Instruments for $8.2 billion, in 2023, and industrial software leader AspenTech with the deal valued at $7.2 billion, earlier this year. In an exclusive interview on Thursday, on the sidelines of Emerson Exchange, the company's annual leadership event in San Antonio, Texas, U.S., Krishnan said building further operating strength focused on Emerson's core competencies - i.e., process hybrid industries around production automation, and test and measurements - would remain a key driver. "It's not about elevated levels of M&A spending by us but the quest for the right kind of asset. Our acquisition strategy will be centered on both our core domains and what high quality assets we can bring in to the Emerson family. "On the production automation side, certainly we've got already have a very comprehensive scope in terms of pressure, temperature, level flow instrumentation, analyzers, control valve, pressure relief valves, isolation valves - you name it. So, I don't see a lot of opportunity for us or the need to build out that capability. 'Certainly there are elements in the research and development side in the automated test sphere where we may consider acquisitions. However, bulk of our moves would all likely be around optimization and software that would augment our vision of the enterprise operations platform and further our core ambition of boundless automation. Anyone who knows us, knows that's a clear area of focus for us,' Krishnan said. With the big two industrial software vendors in the space - AVEVA and AspenTech - already having been acquired by Schneider Electric and Emerson respectively, the market's focus is turning to another leading industrial software firm Cognite. Ram Krishnan, chief operating officer of Emerson speaks at Emerson Exchange 2025 in San Antonio, ... More Texas, U.S. Krishnan declined comment on whether Emerson would be interested in Cognite. 'We have certain targets in mind and I would not like to go into specifics. Doubtless, our competitors have their own wish lists.' Unsurprisingly, as the industrial software and automation market heats up, Emerson may be leading the pack on valuation, but the likes of ABB, Honeywell, Siemens, Schneider and Yokogawa have not held back in recent years either. Krishnan noted: "Given that context, our move for AspenTech should not come as a surprise. Software and industrial optimization is a domain that industrials cannot ignore because ultimately in any technology stack – you've got to have hardware and software. 'But the vision for most would be software defined hardware advantaged. You've got to have the best-in-class software to generate the data, and perform the measurement or actuation function.' Krishnan said the value for customers unlocking higher productivity, reliability, safety and sustainability would come through software, artificial intelligence, the industrial internet of things, and the 'ability to covert data into actionable insights.' Emerson's ultimate objective, Krishnan added, is to help its customers and the wider industrial and manufacturing complex move operations from what is today 'a digitally connected plant to one that is self optimizing" and autonomous. To that end, Emerson launched its enterprise operations platform named 'Project Beyond' on Monday, which is being tipped as the "industry's first software-defined, operational technology-ready digital platform' that will deploy and manage its suite of new artificial intelligence applications and models. 'Project Beyond is the latest in a line offerings from us promising customers software defined, enterprise level execution on the road towards autonomy, which I believe will unlock a lot of value for our customers,' the Emerson COO concluded.
Forbes
21-05-2025
- Business
- Forbes
Emerson To Seamlessly Integrate Its Industrial Automation Tech Stack
(Photo Illustration: Budrul Chukrut) SOPA Images/LightRocket via Getty Images Global technology giant Emerson (NYSE: EMR) said Tuesday it would "seamlessly integrate" its entire industrial automation stack for customers under a new software-defined enterprise operations platform. The move follows the completion of Emerson's takeover of industrial software solutions provider AspenTech in January in a deal valued at $7.2 billion. The seeds of the takeover were planted in 2022, after Emerson initially completed a majority investment stake in AspenTech with an initial stock holding of 55%. But in less than three years, the global giant upped the stakes to buy AspenTech outright, delisting it from the NASDAQ in the process. Launching the enterprise operations platform - named 'Project Beyond' - at Emerson Exchange 2025, the company's week-long leadership and customer conference in San Antonio, Texas, U.S., it noted the offering would be 'the industry's first software-defined, operational technology-ready digital platform' that will deploy and manage its suite of new artificial intelligence applications and models. 'Project Beyond combines industrial AI with contextualized data across a diverse set of automation environments – embedded, edge and cloud – to unlock flexibility, safety, sustainability and performance,' it added. Emerson's move comes at a time of rising demand for increased software-defined capability and hardware-based AI accelerators, as the global energy, industrial and manufacturing complex strives for increased throughput and lower carbon emissions. The company claimed the speed of technology and industrial AI advancements, combined with increased computing power needs and the unprecedented volume and complexity of siloed data generated across industrial assets, requires a new, cost-efficient way for companies to leverage automation across the enterprise while protecting existing investments. The platform will 'tackle this challenge' by creating a 'flexible, scalable and secure' basis to connect customers' existing automation installed base with modern technologies to empower continuous, enterprise-wide visibility, optimization and, eventually, autonomous operations. Emerson did not provide financial targets for the platform at the launch but noted that 'Project Beyond will provide customers with a consistent platform to deploy and manage new AI applications and models, along with contextualized data.' It believes both existing and potential customers in industries such as energy, power, life sciences, chemicals and mining will be receptive to its move. 'Companies are eager to modernize automation and keep pace with the promise of new technologies like AI without ripping and replacing their existing infrastructure or dealing with the pain and costs of integrating new applications and millions of fragmented data points,' said Ram Krishnan, chief operating officer at Emerson. 'Project Beyond will use the power of software-defined control to introduce an entirely new, scalable, seamlessly integrated infrastructure with automated data contextualization to turn trapped data into powerful operational efficiencies.' The six building blocks of Project Beyond include - computing power, networking and connectivity, data operations, app marketplace, AI orchestration and a zero-trust security architecture for industries. In many ways, Emerson's acquisition of AspenTech paved the way for what has since followed in the shape of its latest product launch. 'By combining Emerson's industrial automation capabilities with AspenTech's deep software expertise – from modeling and optimization to machine learning and AI – we're embedding artificial intelligence into our systems, turning information into insights that will help our customers along their journey toward optimized autonomous operations,' Krishnan concluded.
