According to Zacks, “Year to date, Emerson's shares have outperformed the industry. We believe that the company will gain from acquisitions as well as rewarding shareholders handsomely through dividends and share buybacks. Results in fiscal 2019 are likely to benefit from steady growth in North America heating and cooling, global professional tools, and Latin American end markets. Moreover, its healthy cash flow allows management to return higher values to shareholders. For fiscal 2019, the company lowered the sales growth projection from 7-10% to 7-8.5%, with underlying sales now expected to grow 4-5.5% versus the earlier 4-7%. Earnings are predicted to be $3.60-$3.70, down from the previously stated $3.60-$3.75 per share. Also, headwinds in currency translation might be detrimental. Adverse impact of 2% on sales is also predicted for fiscal 2019.”
A number of other brokerages have also recently commented on EMR. Citigroup upgraded shares of Emerson Electric from a “neutral” rating to a “buy” rating and upped their price target for the company from $67.00 to $81.00 in a research note on Monday, April 8th. Credit Suisse Group raised their price objective on shares of Emerson Electric from $70.00 to $75.00 and gave the company an “outperform” rating in a research report on Wednesday, February 6th. Morgan Stanley set a $77.00 price objective on shares of Emerson Electric and gave the company a “buy” rating in a research report on Friday, February 8th. Finally, Cowen restated a “buy” rating and set a $81.00 price objective on shares of Emerson Electric in a research report on Tuesday, February 5th. Nine equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $76.41.
Emerson Electric (NYSE:EMR) last announced its quarterly earnings results on Tuesday, May 7th. The industrial products company reported $0.84 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.84. The company had revenue of $4.57 billion for the quarter, compared to analysts’ expectations of $4.64 billion. Emerson Electric had a net margin of 12.81% and a return on equity of 24.63%. Emerson Electric’s revenue was up 7.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.76 EPS. On average, equities analysts predict that Emerson Electric will post 3.65 EPS for the current year.
Several hedge funds have recently added to or reduced their stakes in the stock. Golden State Wealth Management LLC purchased a new position in Emerson Electric during the first quarter worth about $27,000. Glassman Wealth Services grew its position in shares of Emerson Electric by 240.7% in the 1st quarter. Glassman Wealth Services now owns 402 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 284 shares in the last quarter. Massey Quick Simon & CO. LLC acquired a new position in shares of Emerson Electric in the 4th quarter worth approximately $30,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Emerson Electric in the 1st quarter worth approximately $34,000. Finally, Laurel Wealth Advisors LLC acquired a new position in shares of Emerson Electric in the 4th quarter worth approximately $36,000. 73.06% of the stock is currently owned by institutional investors.
About Emerson Electric
Emerson Electric Co, a technology and engineering company, provides various solutions to industrial, commercial, and consumer markets worldwide. The company's Automation Solutions segment offers products and integrated solutions, including measurement and analytical instrumentation; valves, actuators, and regulators; industrial solutions; and process control systems and solutions.
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