|Bid||75.99 x 900|
|Ask||75.93 x 900|
|Day's Range||75.59 - 77.24|
|52 Week Range||55.39 - 77.24|
|Beta (5Y Monthly)||1.38|
|PE Ratio (TTM)||20.48|
|Forward Dividend & Yield||2.00 (2.60%)|
|1y Target Est||N/A|
Emerson Electric (EMR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth […]
(Bloomberg Opinion) -- Deere & Co. results show the trouble with reading the economic tea leaves.The maker of tractors and construction equipment slumped on Wednesday after announcing a depressed outlook for fiscal 2020 that caught investors off guard. Deere expects net income to be no higher than $3.1 billion next year, a decline relative to 2019 and well below the $3.46 billion analysts had been modeling. Here was investors’ response:The root of the disappointment is Deere’s expectation that global agricultural and turf equipment sales will slump 5% to 10% next year. Heading into earnings, there was optimism that Deere might even see growth in that division, should the prospect of a trade deal and the Trump administration’s plans to pump financial support into the farming industry incentivize growers to finally swap out aging equipment. Indeed, data released by the Commerce Department on Wednesday showed that capital spending excluding aircraft increased in October by the most since the start of the year, adding credence to the idea that the slowdown in industrial growth is bottoming out.With the trade war still lingering in the background, though, it appears Deere CEO John May isn’t banking on much of anything. That seems the prudent path to take. For one, May only just ascended to the CEO role this month and is likely disinclined to set goals he can’t guarantee in such an uncertain environment (3M Co.’s Michael Roman, who’s cut guidance an absurd number of times in his short tenure, should probably take note). But even CEOs who have been around for a while would have trouble predicting how their customers will act six to nine months down the road. This industrial downturn has been different from others in that it’s not a function of supply-and-demand dynamics but of political uncertainty. Manufacturing data can naturally be lumpy given the volatile timing of big projects, or in the case of this year, the General Motors Co. labor strike. But the unpredictable nature of trade negotiations makes the trajectory of any recovery particularly difficult to predict.The tariffs that China and the U.S. have levied against each other have made inventory management something more akin to an Olympic sport as companies try to get ahead of the levies but also guard against getting stuck with a bunch of unwanted goods. That challenge was reflected in Deere’s outlook. Looking at the broader market, Deere expects demand for agricultural equipment to drop 5% in the U.S. and Canada, while the European, South American and Asian markets are seen remaining flat. That’s not as severe as Deere’s forecast for its own business, a dynamic which Jefferies analyst Stephen Volkmann says likely reflects an expectation that dealers are still sitting on too much inventory and will work through that before placing new orders. An upwardly revised GDP figure released Wednesday of 2.1% for the third quarter also reflected inventory accumulation. Point being, no one really knows anything, and everyone is afraid of moving in the wrong direction. One reason Deere’s lackluster guidance hit its stock particularly hard is that the forecast wasn’t accompanied by much detail on restructuring that the company had previously indicated would be forthcoming. The company will implement a voluntary separation program for some employees that should save about $150 million annually when combined with 2019 cost-cutting efforts. If the outlook is really as bad as Deere claims, though, you would think we would see something more substantive on cost cuts. But to get aggressive with restructuring, Deere also has to be confident that this market isn’t going to turn around on a dime if there is in fact a legitimate trade deal, lest it end up short-staffed. The Trump administration is quickly running out of ways to describe the trade talks and proximity to a “phase-one” agreement. One day we were down to the “short strokes,” the next we’re in the rather morbid sounding “final throes.” But while investors are more than happy to price in those words as a done deal, CEOs are thinking differently. Deere’s downbeat guidance follows similar outlooks from Caterpillar Inc. and Emerson Electric Co. that in certain lights could be construed as conservative. Or they might just be accurate.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Emerson (EMR) will assist Total E&P Denmark in replacing the wellhead platforms by installing new and elevated topsides in its Tyra gas field redevelopment project.
Today we're going to take a look at the well-established Emerson Electric Co. (NYSE:EMR). The company's stock led the...
Industry experts estimate the U.S. needs 500,000 electricians to fulfill the growing construction demands. To alleviate the skills gap, Emerson's (NYSE: EMR) Greenlee business is working with electrical contractor FSG to integrate GreenApple Labs curriculum into its free training program. FSG recently opened its Dallas, San Antonio and Austin locations, where more than 150 students attended the event to advance their trade career.
Emerson (EMR) ASCO Series 273 Pinch Valve provides better safety to operators apart from enabling them to accelerate setup, in turn, reducing costs and making unscheduled maintenance simple.
Several companies with an industrial bent, along with a natural gas utility and another that distributes electricity, were among the firms that declared dividend increases.
Nearly 300 guests attended the St. Louis Business Journal's second annual Corporate Philanthropy Awards at the Marriott St. Louis West Hotel Friday morning.
Winner: Large companies Emerson Electric Co.’s charitable contributions touch a variety of initiatives in the St. Louis region and beyond. “We look for opportunities to support the development and delivery of sound, innovative programs or initiatives that help improve and enrich human lives,” said David Rabe, Emerson’s vice president of social responsibility. Emerson supports initiatives as diverse as planting 1,000 trees in Poland (which it did in 2018) and pledging $1.5 million over five years to renovate the Emerson Family YMCA in Ferguson, the company’s home and focus of much its charitable work for more than 75 years.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Emerson Electric Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Could Emerson Electric Co. (NYSE:EMR) be an attractive dividend share to own for the long haul? Investors are often...
Emerson Electric Co Chief Executive David Farr said on Tuesday that "everything is on the table" as the industrial products company takes a top-to-bottom look at its cost structure and business units. Emerson has been under pressure from hedge fund D.E. Shaw & Co to cut costs and even split up the company. Farr said, however, that D.E. Shaw's candidate for Emerson's board of directors, Mark Blinn, leap-frogged over two other candidates being considered.
(Bloomberg Opinion) -- Emerson Electric Co. may have dodged a proxy fight, but it can’t avoid an earnings slump.The maker of air-conditioner components and automation equipment said Tuesday that it would add the former chief executive officer of Flowserve Corp. to its board and pledged to complete a review of its operations by February. The moves are meant to be a balm for activist investor D.E. Shaw & Co., which has called for more aggressive cost cuts, corporate governance improvements and a breakup. A lack of tangible commitments and deadlines in Emerson’s agreement to consider the activist’s recommendations likely contributed to a notably feisty letter from D.E. Shaw last month that blasted what it described as a bloated budget, including a corporate aviation department with no fewer than eight jets, a helicopter and its own intern.Emerson’s new board member, Mark Blinn, was CEO of Flowserve from 2009 to 2017. He’s not a household name, and Flowserve underperformed the S&P 500 Index during his tenure, but he was one of four candidates D.E. Shaw recommended, according to Bloomberg News. As such, the activist said Tuesday that it would back the company’s slate. According to D.E. Shaw, Emerson has also committed to reviewing how it pays its executives and will seek shareholder approval to amend its charter so that directors are elected annually. There was no update on those corporate jets in the earnings materials released Tuesday morning, although a conference call is scheduled for later this afternoon.Emerson’s concessions to D.E. Shaw are wise; it’s not in a position to pick a fight now. Also on Tuesday, the company released disappointing guidance for its 2020 fiscal year and predicted the coming U.S. presidential election, continued trade tensions and increased restructuring by manufacturers would leave investment decisions stalled. “We are planning for a challenging economic environment,” CEO David Farr said in the news release. This was a notably more downbeat outlook on the economy than other industrial companies have given this earnings season and contrasts with Parker-Hannifin Corp.’s prediction last week that its own sales slump would bottom out in the middle of its 2020 fiscal year. Emerson’s guidance for $3.48 to $3.72 in adjusted earnings per share implies a decline compared with last year’s numbers on the same basis. Sales may slump as much as 2%, excluding the impact of currency swings and M&A. With numbers like that, Emerson’s goal of achieving $4.50 in EPS by 2021 would be a significant stretch. Emerson said it will “reset” its long-term guidance as part of its February update. What’s troubling is that Emerson’s 2020 outlook doesn’t appear to reflect many benefits from the $95 million it spent cutting costs over the past year to adjust its operations to the downturn, Gordon Haskett analyst John Inch wrote in a report on Tuesday. That’s key because cost cuts sit at the crux of D.E. Shaw’s argument for a higher stock price. Analysts have pushed back on D.E. Shaw’s estimate of more than $1 billion in excess costs at Emerson, noting that some of the activist investor’s margin comparisons are unfair because many of the company’s rivals strip out restructuring, pension expenses and other expenses. In response, Emerson provided additional details about its pension and stock compensation costs for its most recent results. But it also moved to an adjusted earnings outlook after previously giving its forecast on a GAAP basis except in certain circumstances. The company says this is because 2020 restructuring actions will be determined as part of the board’s review and the guidance will be updated in February to reflect that. Let’s hope that’s true and that D.E. Shaw’s push doesn’t have the unfortunate side effect of yet another industrial company becoming addicted to earnings adjustments.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Emerson Electric’s earnings, reported Tuesday morning, were solid, but management said sales could fall in fiscal 2020.
Emerson Electric Co. on Tuesday announced it was expanding its board of directors, adding former Flowserve CEO Mark Blinn in a move that received praise from the activist investor moving to break up the company. Blinn has more than 20 years of experience operating multi-industrial businesses and as "a breadth of knowledge in energy and automation end markets," Emerson CEO and Chairman David N. Farr said in a news release. D.E. Shaw is pushing to break up Emerson into two separate companies: an industrial automation company and a climate technology-focused company, while targeting what it's described as "inefficient and insufficiently focused" efforts to contain costs, estimating the manufacturer can save over $1 billion annually.
Emerson Electric Co said on Tuesday it named Mark Blinn to its board, bowing to pressure from activist shareholder D.E. Shaw, which has called for a breakup of the U.S. factory automation equipment maker. The New York-based hedge fund, which owns a more than 1% stake in the Ferguson, Missouri-based company, wants Emerson to split into two businesses - the industrial automation business and the climate technology-focused unit. The hedge fund has said the move could unlock more than $20 billion worth of shareholder value.