Emerson Electric (NYSE:EMR) Issues Quarterly Earnings Results

Emerson Electric (NYSE:EMR) posted its earnings results on Tuesday. The industrial products company reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.41 by $0.05, FiscalAI reports. The business had revenue of $4.35 billion during the quarter, compared to analyst estimates of $4.37 billion. Emerson Electric had a return on equity of 15.87% and a net margin of 12.73%.

Here are the key takeaways from Emerson Electric’s conference call:

• The company reported a strong fiscal 2025 with sales up 3%, operating cash flow up 11%, free cash flow up 12% and EPS up 43%, and highlighted strategic moves including the acquisition of Aspen Technology and National Instruments and the divestiture of Copeland to build a cohesive automation portfolio.
• All three incumbent director nominees (Martin Craighead, Gloria Flach, Matthew Levatich) were elected to three-year terms by a substantial majority, maintaining board continuity.
• The advisory “say-on-pay” vote for fiscal 2025 executive compensation was approved by approximately 90% of votes, though the vote is non-binding.
• Shareholders ratified the Audit Committee’s appointment of KPMG LLP as Emerson’s independent registered public accounting firm for fiscal 2026 by roughly 92%.
• The proposal to amend the Restated Articles to declassify the board did not reach the required 85% of outstanding shares and therefore was not approved.

Emerson Electric Price Performance

Emerson Electric stock traded up $3.52 during mid-day trading on Tuesday, hitting $152.15. 4,137,762 shares of the company traded hands, compared to its average volume of 3,141,614. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.65 and a current ratio of 0.88. Emerson Electric has a one year low of $90.06 and a one year high of $154.04. The stock has a market cap of $85.56 billion, a price-to-earnings ratio of 37.66, a price-to-earnings-growth ratio of 2.38 and a beta of 1.26. The stock has a fifty day moving average price of $139.89 and a 200-day moving average price of $135.92.

Emerson Electric Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Friday, November 14th were issued a dividend of $0.555 per share. This represents a $2.22 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, November 14th. This is a boost from Emerson Electric’s previous quarterly dividend of $0.53. Emerson Electric’s payout ratio is presently 54.95%.

Emerson Electric announced that its board has authorized a stock repurchase plan on Wednesday, November 5th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the industrial products company to reacquire shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Emerson Electric

In other news, CEO Surendralal Lanca Karsanbhai sold 7,263 shares of Emerson Electric stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $133.00, for a total value of $965,979.00. Following the transaction, the chief executive officer owned 196,292 shares in the company, valued at approximately $26,106,836. The trade was a 3.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.23% of the stock is currently owned by company insiders.

Institutional Trading of Emerson Electric

Institutional investors have recently added to or reduced their stakes in the business. Darwin Wealth Management LLC purchased a new stake in Emerson Electric in the 2nd quarter valued at about $29,000. Wealth Watch Advisors INC bought a new stake in shares of Emerson Electric during the third quarter valued at approximately $33,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Emerson Electric in the third quarter valued at approximately $69,000. Riggs Asset Managment Co. Inc. grew its stake in Emerson Electric by 14.0% in the second quarter. Riggs Asset Managment Co. Inc. now owns 740 shares of the industrial products company’s stock worth $99,000 after purchasing an additional 91 shares in the last quarter. Finally, WFA of San Diego LLC purchased a new position in Emerson Electric during the 2nd quarter worth $113,000. 74.30% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

EMR has been the subject of several research analyst reports. Morgan Stanley lifted their price objective on shares of Emerson Electric from $115.00 to $125.00 and gave the company an “underweight” rating in a research note on Friday, January 9th. JPMorgan Chase & Co. raised their target price on Emerson Electric from $150.00 to $157.00 and gave the company a “neutral” rating in a research note on Friday, January 16th. UBS Group raised Emerson Electric from a “neutral” rating to a “buy” rating and upped their price target for the stock from $131.00 to $168.00 in a research note on Monday, January 5th. Barclays raised their price objective on Emerson Electric from $135.00 to $145.00 and gave the company an “equal weight” rating in a research note on Wednesday, January 7th. Finally, Jefferies Financial Group upped their target price on Emerson Electric from $145.00 to $150.00 and gave the stock a “hold” rating in a research report on Thursday, January 15th. Ten research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $154.76.

Emerson Electric Company Profile

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.