Company Reports

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. We believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the widening shortage of skilled labor. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

Emerson reported 7% year-over-year sales growth. A 270-basis-point margin expansion translated into 13% adjusted earnings-per-share growth.

Emerson reported second-quarter sales growth of 5% year over year. Geographical results were mixed; Emerson's US business saw 9% sales growth while its Asia, Middle East, and Africa business shrank 5%.

Emerson reported first-quarter sales growth of 4% year over year. Results were bolstered by strength in Emerson's test & measurement segment, which increased its sales 14%.

Emerson reported fourth-quarter and full-year fiscal 2025 results, growing its sales 3% on the year. Results were bolstered by strength in Emerson's control systems & software segment, which now houses AspenTech.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. We believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the widening shortage of skilled labor. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

Emerson Electric reported 4% sales growth and a relatively flat operating margin for the third quarter, resulting in 6% growth in adjusted EPS year over year. Shares traded sharply lower in reaction on Aug. 6.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. We believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the widening shortage of skilled labor. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

Emerson reported 2% organic sales growth, but 210 basis points of pretax earnings margin contraction resulted in a 9% decline in EPS year over year. Shares traded up 2% on May 7.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. Despite near-term headwinds, we believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the development of smarter technology. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

Emerson reported first-quarter 2025 earnings on Feb. 5, delivering around 1% top-line growth from last year. Margins rose significantly, contributing to low teens compounding of Emerson's earnings per share. Our fair value estimate remains unchanged at $111 per share.

Emerson experienced a solid fiscal fourth quarter, delivering around 6% top-line growth excluding its National Instruments acquisition. Gross margin for fiscal 2024 also rose significantly, crossing above 50% for the first time. We’ve raised our fair value estimate nearly 8% to $111 per share from $103 to reflect our more bullish outlook on Emerson’s margin profile. We'll revisit our fair value estimate for Emerson after the 10-K is released and we update our model.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. Despite near-term headwinds, we believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the development of smarter technology. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

After taking a fresh look at the global process automation leader, we’ve decreased Emerson Electric’s fair value estimate to $103 per share from $115. The decrease in our fair value estimate stems from more bearish margin expectations due to a short-term manufacturing slowdown. We’ve maintained our wide economic moat rating and Standard Capital Allocation Rating.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. Despite near-term headwinds, we believe the firm is poised for several years of positive organic growth on the heels of secular trends driving the adoption of factory automation products, such as rising global safety standards and the development of smarter technology. Even as Emerson holds either first or second share in a variety of product categories, established firms’ market share remains somewhat fragmented, suggesting a large runway for growth. We believe automation can add more to a manufacturing firm’s bottom line than most other investments, and we expect predictive analytics to augment these results.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. Despite near-term headwinds, we believe the firm is poised for several years of positive organic growth. Its total addressable automation market, both served and unserved, totals over $200 billion, of which approximately 59% is in hardware and services, 32% in control product software, and 9% stand-alone software. Even as Emerson holds either first or second share in a variety of product categories, established firms' share remains somewhat fragmented (depending on the category, Emerson holds roughly midteens market share), suggesting a large runway for growth.

We are maintaining our $115 per share fair value estimate for wide-moat-rated Emerson after the company reported its fiscal third-quarter results. We've made some puts and takes in our model, but our slightly more muted near-term revenue growth expectations, which reflect a more protracted recovery in discrete automation, were offset by time value of money.

We are maintaining our $115 fair value estimate for wide-moat-rated Emerson after the company announced the sale of its remaining interest in the Copeland joint venture, formerly the climate technologies business, to Blackstone for roughly $3.5 billion. Management expects the deal to close in the second half of 2024.

Wide-moat-rated Emerson’s fiscal second-quarter revenue of $4.4 billion and adjusted EPS of $1.36 both came in above FactSet consensus estimates of $4.3 billion and $1.25, respectively. We’ve increased our fair value estimate to $115 from $113, driven by our slightly more optimistic near-term margin assumptions and time value of money.

In our view, Emerson Electric is the undisputed powerhouse in process manufacturing on the west side of the Atlantic. Despite near-term headwinds, we believe the firm is poised for several years of positive organic growth. Its total addressable automation market, both served and unserved, totals over $200 billion, of which approximately 59% is in hardware and services, 32% in control product software, and 9% stand-alone software. Even as Emerson holds either first or second share in a variety of product categories, established firms' share remains somewhat fragmented (depending on the category, Emerson holds roughly midteens market share), suggesting a large runway for growth.