Emerson Electric (EMR) Lifted to Hold at Zacks Investment Research
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.”
Several other equities analysts have also issued reports on EMR. Cowen reissued a buy rating and set a $81.00 target price on shares of Emerson Electric in a research note on Wednesday, January 30th. Credit Suisse Group increased their target price on Emerson Electric from $70.00 to $75.00 and gave the stock an outperform rating in a research note on Wednesday, February 6th. Morgan Stanley set a $77.00 target price on Emerson Electric and gave the stock a buy rating in a research note on Friday, February 8th. Finally, Citigroup raised Emerson Electric from a neutral rating to a buy rating and increased their target price for the stock from $67.00 to $81.00 in a research note on Monday, April 8th. Nine research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. The company currently has an average rating of Buy and an average price target of $76.41.
Emerson Electric (NYSE:EMR) last posted its earnings results on Tuesday, May 7th. The industrial products company reported $0.84 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.84. Emerson Electric had a return on equity of 24.63% and a net margin of 12.81%. The firm had revenue of $4.57 billion for the quarter, compared to analyst estimates of $4.64 billion. During the same quarter in the prior year, the company earned $0.76 EPS. Emerson Electric’s revenue was up 7.6% on a year-over-year basis. Equities analysts forecast that Emerson Electric will post 3.66 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Monday, June 10th. Shareholders of record on Friday, May 17th will be issued a dividend of $0.49 per share. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $1.96 annualized dividend and a yield of 3.13%. Emerson Electric’s dividend payout ratio (DPR) is 57.99%.
A number of hedge funds and other institutional investors have recently modified their holdings of EMR. Norges Bank purchased a new stake in Emerson Electric during the 4th quarter worth about $430,663,000. Oregon Public Employees Retirement Fund increased its holdings in Emerson Electric by 5,802.2% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 4,095,444 shares of the industrial products company’s stock worth $69,000 after purchasing an additional 4,026,056 shares during the period. FMR LLC increased its holdings in Emerson Electric by 83.1% during the 4th quarter. FMR LLC now owns 6,998,682 shares of the industrial products company’s stock worth $418,171,000 after purchasing an additional 3,176,614 shares during the period. BlackRock Inc. increased its holdings in Emerson Electric by 7.3% during the 1st quarter. BlackRock Inc. now owns 45,135,139 shares of the industrial products company’s stock worth $3,090,402,000 after purchasing an additional 3,058,256 shares during the period. Finally, Two Sigma Advisers LP increased its holdings in Emerson Electric by 380.4% during the 4th quarter. Two Sigma Advisers LP now owns 3,092,853 shares of the industrial products company’s stock worth $184,798,000 after purchasing an additional 2,448,999 shares during the period. Institutional investors own 72.22% of the company’s stock.
Emerson Electric Company Profile
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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