Advertisement
U.S. markets open in 28 minutes
  • S&P Futures

    5,307.50
    -0.75 (-0.01%)
     
  • Dow Futures

    40,181.00
    +37.00 (+0.09%)
     
  • Nasdaq Futures

    18,492.00
    -11.75 (-0.06%)
     
  • Russell 2000 Futures

    2,141.30
    +2.90 (+0.14%)
     
  • Crude Oil

    82.64
    +1.29 (+1.59%)
     
  • Gold

    2,230.90
    +18.20 (+0.82%)
     
  • Silver

    24.73
    -0.03 (-0.11%)
     
  • EUR/USD

    1.0817
    -0.0013 (-0.12%)
     
  • 10-Yr Bond

    4.2200
    +0.0240 (+0.57%)
     
  • Vix

    13.00
    +0.22 (+1.72%)
     
  • GBP/USD

    1.2647
    +0.0009 (+0.07%)
     
  • USD/JPY

    151.2180
    -0.0280 (-0.02%)
     
  • Bitcoin USD

    70,785.02
    +613.26 (+0.87%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,954.06
    +22.08 (+0.28%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Emerson to Boost Hybrid Market Presence With GE Unit Buyout

Emerson Electric Co. EMR recently announced that it has inked an agreement to buy Intelligent Platforms — a division of General Electric Company GE. With the help of Intelligent Platforms’ programmable logic controller (PLC) technologies, Emerson will be able to offer its customers broader control as well as management of their operations.

Based in Charlottesville, VA, Intelligent Platforms employs about 650 employees globally. The company offers industrial software, control systems as well as embedded computing platforms that support monitoring, analyzing and optimizing of operations.

The acquisition will enable Emerson to expand its opportunities in machine control and discrete applications across process industries as well as hybrid markets. Notably, Emerson’s advanced distributed control systems, coupled with Intelligent Platforms’ PLC technology will enable customers to connect “islands of automation” within the plant that would boost operational performance and safety.

Notably, the buyout is likely to be completed in the first half of fiscal 2019 (ending March 2019), depending on regulatory approvals as well as other customary closing conditions. However, the terms of the acquisition were kept under wraps.

Existing Business Scenario

Emerson is experiencing robust sales generated from mature and emerging end markets. Going forward, the company believes that increased turnaround activity, and ongoing mid and small-sized maintenance, repair and operations projects will bolster revenues of its Automation Solutions segment. On the other hand, continued growth in air conditioning demand will likely drive the top-line performance of the company's Commercial & Residential Solutions segment.

Moreover, the company’s ongoing restructuring and cost-reduction efforts, as well as greater operational efficacy are likely to drive its near-term profitability. In the past three months, this Zacks Rank #3 (Hold) company has returned 13.2%, outperforming the industry’s average gain of 10.3%.

However, material cost inflation remains a cause of concern for Emerson. As a matter of fact, the company expects inflation environment to persist even in the quarters ahead and plans to have more material containment on account of the same.

Stocks to Consider

A couple of better-ranked stocks from the same space are Eaton Corporation plc ETN and Ideal Power Inc. IPWR. Both the companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Eaton surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 2.87%.

Ideal Power outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 18.09%.

Best Electric Car Stock? You'll Never Guess It.

Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!

Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.

See Zacks Best EV Stock Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
Ideal Power Inc. (IPWR) : Free Stock Analysis Report
 
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement