|Bid||61.11 x 800|
|Ask||63.42 x 1000|
|Day's Range||61.59 - 63.44|
|52 Week Range||37.75 - 78.38|
|Beta (5Y Monthly)||1.51|
|PE Ratio (TTM)||17.58|
|Forward Dividend & Yield||2.00 (3.24%)|
|Ex-Dividend Date||May 14, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Schneider Electric SE and Emerson Electric Co. are among manufacturing companies considering multibillion-dollar offers for industrial software maker OSIsoft LLC, according to people familiar with the matter.OSIsoft founder J. Patrick Kennedy and minority owner SoftBank Group Corp. are working with advisers on a potential sale of the whole company, which could fetch more than $4 billion, said the people, who asked not to be identified because the matter is private.Next-round bids are due in July and the business could attract interest from other industrial companies as well as technology firms, the people said. Deliberations may not lead to a transaction and Schneider and Emerson may decide against making formal offers, the people said.The world’s biggest industrial companies, including France’s Schneider, Emerson of the U.S. and Germany’s Siemens AG, are competing to acquire technology companies as they shift their focus to software and automation from machinery. Schneider, for example, agreed to buy RIB Software SE earlier this year and U.K. industrial software business Aveva Group Plc in 2017, and said it could do further such deals.Representatives for OSIsoft, Schneider, Emerson and SoftBank declined to comment. Kennedy declined to comment.Last month, Bloomberg News reported SoftBank was looking to sell its stake in the company, which is held by its Vision Fund. The move is part of SoftBank’s new focus on raising cash, people familiar with the matter said. The potential stake sale ended up attracting offers for the entire company, the people added.San Leandro, California-based OSIsoft was founded in 1980 by Chief Executive Officer Kennedy, a research engineer, and was formerly called Oil Systems, Inc. It sells software for use in sectors including oil and gas, utilities, manufacturing and pharmaceutical development, according to its website.While Kennedy controls the company, SoftBank acquired a “significant minority stake” in 2017 from venture capital backers including Kleiner Perkins Caufield & Byers and TCV, according to a statement.SoftBank’s investment was worth a bit less than $1 billion, a person familiar with the matter said at the time. Japan’s Mitsui & Co. is also a minority investor, according to PitchBook.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Emerson Electric (EMR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg Opinion) -- With the coronavirus pandemic turning the world’s economy upside down, analysts and investors have a lot of questions, and companies are doing their best to answer them. So if it feels like earnings calls were extra long these past few weeks, that’s because they were. Among the 29 members of the Dow Jones Industrial Average who normally have earnings calls and have held one since the beginning of March, 22 companies ran longer than usual by an average of about 10 minutes.Johnson & Johnson executives were the most verbose, with the company’s April 14 earnings call stretching about 1 hour and 43 minutes. That was nearly 26 minutes longer than the average of Johnson & Johnson’s previous four earnings calls. Even Walmart Inc., which doesn’t consistently hold public earnings calls, held an hour-long one on Tuesday to discuss first-quarter results. Analysts are generally grateful to have the extra information, but they, too, are noticing the longer calls. “Sorry, I was just fixing myself some dinner,” joked JPMorgan Chase & Co. analyst Steve Tusa in the middle of Emerson Electric Co.’s April 21 earnings call, which took place in the morning but stretched on a bit. “This is a pretty comprehensive conference call you’re having here.” Emerson, which isn’t a member of the Dow, included presentations by its major business heads as well as the CEO, CFO and company president. All told, the call lasted more than 2 hours, about 45 minutes longer than the recent average. It’s probably wise to stockpile snacks ahead of the next round of calls in July. This 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.Elaine He is Bloomberg Opinion's data visualization columnist in Europe, focusing on business and markets coverage. Before joining Bloomberg, she was a graphics editor at the Wall Street Journal and the New York Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
What did Emerson really tell investors when it reduced its full-year guidance? Here's a look at the math that shows just how bad things are.
(Bloomberg Opinion) -- Tuesday was a jam-packed day for earnings across all sectors. In the industrial landscape, I paid closest attention to 3M Co., Caterpillar Inc. and United Parcel Service Inc., each a bellwether in its own right. You can find the specifics on earnings numbers in the companies’ news releases here, here and here, but in this time of unprecedented volatility, what CEOs are saying about how they are running their businesses is more telling. Here are my top takeaways:3M: Like many companies, 3M has suspended its 2020 guidance given the unpredictable nature of the coronavirus outbreak and rolling economic shutdowns, but in an effort to provide more transparency, the maker of Post-it notes is now going to provide monthly sales updates — broken down by geography and business segment — for the foreseeable future. This follows Emerson Electric Co.’s marathon two-hour-plus earnings call last week that featured presentations by not only the CEO and CFO but also the heads of its main business divisions. It’s nice to see companies setting the bar high on disclosures during this period of upheaval; hopefully others follow suit. The second quarter is expected to bring the worst of the virus impact, and 3M is cutting $350 million to $400 million of costs in the period to adjust to lower demand. Notably, however, much of that involves discretionary spending on things like travel, external services and advertising, rather than cuts to payroll, which 3M says it’s trying to minimize. It’s using furloughs, but they’re paid leaves, and in other cases, employees are being asked to take vacation. Bear in mind that 3M had announced a restructuring plan in January, separate from the coronavirus, that would see it eliminate some 1,500 jobs, so it’s hardly a corporate saint. But given its sales of N95 respirators, you’d be hard-pressed to find a company that better understands the toll the virus is taking, and 3M seems to legitimately want to to do the right thing by its workforce. Like others in the industrial sector, the company also appears wary of cutting too deep and being unprepared for an eventual recovery. 3M is clearly conscious of its image after having its name dragged through the mud by President Donald Trump and billionaire Mark Cuban over production and sales of N95 respirators. The company devoted an entire slide in its earnings presentation to the topic. 3M has already doubled global N95 output to 100 million per month and is investing in capacity to double that yet again; it’s directed 90% of production to health-care workers, with the remainder going to other critical industries such as food production; and the company has cut loose some distributors who acted “unethically” and is pursuing numerous lawsuits amid allegations of price gouging. The company also made a point of highlighting its 76 plants and distribution centers across the U.S. in an apparent nod toward calls for a revival of America’s manufacturing might. “3M has never left our home country,” CEO Michael Roman said on the call. CATERPILLAR : The maker of bulldozers and backhoes is also holding off on sweeping job cuts, and it made an interesting argument as to why that’s the case. Caterpillar held headcount as well as administrative, manufacturing and research spending relatively flat from 2016 to 2019, even as sales increased some 40%. That means there’s less to cut when a downturn hits, CEO Jim Umpleby said on a call to discuss the company’s first-quarter results. It also means Caterpillar doesn’t have to use up cash to pay out large amounts of severance, and “cash is obviously king in this environment,” Umpleby said. So the overall effect is that margins and cash flow will be higher than historically, even though the chaotic nature of the coronavirus outbreak and supply-chain disruptions will likely prevent the company from reaching its targets on those metrics. While Caterpillar has suspended share buybacks and is delaying some R&D and capital expenditure projects with less visible returns, it made the decision to continue investing in growing its services business and expanding its product offerings because it continues to view those initiatives as key to its longer-term profitability. That’s a positive sign that the coronavirus hasn’t completely zapped CEOs’ appetite for investment.UPS: The good news for the package-delivery company is that its services have never been more important as store shutdowns and fear of contagion drive more consumers to online ordering. The bad news is that the spike in sales is coming at the expense of its profit margin. Why? It’s partly due to the sporadic nature of residential deliveries, which makes the process more expensive than shipping to businesses, and also because of the increased expenses involved in keeping workers safe. The knock-on costs of the coronavirus — including the expense of doing extra cleaning and providing workers with protective gear — amounted to $140 million in the first quarter. That’s an important data point to keep in mind as companies across less essential industries start bringing people back to work. Like Caterpillar, UPS will maintain investments in strategic priorities such as automation to help bolster its longer-term profitability. An expected $1 billion reduction in capital expenditures is going to come largely from a rethink of certain facilities projects and a delay in vehicle purchases. The company is also working with its customers when it comes to investing in their supply chains as the coronavirus exposes the flaws in far-flung networks. In many cases, that's going to mean a shift to third-party order fulfillment and logistics services. This is just an acceleration of a reappraisal that began with the U.S.-China trade war, UPS CEO David Abney said on the earnings call. A lot remains unknown about the coronavirus pandemic, but the messaging from most industrial CEOs at this point has focused on staying the course, whether that means maintaining most of the workforce or following through on investment commitments. UPS's Abney may have put it best: “I don't know that we'll ever get back to what we call the old normal, but we're not ready to declare what we see today as a new normal, either.”This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Emerson Electric has significant exposure to the price of oil, but its financial position is sound and its dividend is sustainable.
Yahoo Finance is maintaining a working list companies that have been affected by the outbreak, and are expected to feel the effects through the first half of the year.
Emerson (EMR) expects digital transformation, investments, productivity and cost reduction efforts to deliver high values to customers and shareholders.
Favorable trends in most of Emerson's (EMR) process and hybrid end markets along with solid robust backlog level at the Automation Solutions segment are impressive.
It looks like Emerson Electric Co. (NYSE:EMR) is about to go ex-dividend in the next 3 days. Ex-dividend means that...
(Bloomberg Opinion) -- Boeing deserves blame for many things, but dragging U.S. economic growth below 3% isn’t one of them. U.S. Treasury Secretary Steven Mnuchin told Fox Business on Thursday that Boeing Co. is a big reason the U.S. won’t see the 3% expansion in gross domestic product that the Trump administration had been predicting for 2020. The Max crisis will shave 50 basis points or more off of GDP this year, Mnuchin said.Boeing is the largest U.S. exporter, and a production halt for its grounded 737 Max that took effect in January will undoubtedly be a drag on growth, particularly in the first quarter, and economists have said as much. Federal Aviation Administration chief Steve Dickson said Thursday that Boeing had discovered yet another new software issue on the Max in the latest reminder that the jet’s return remains highly fluid and that the current best estimate for a mid-2020 reintroduction may be realistic rather than conservative.(1) But to believe Mnuchin’s statement, you have to also believe that there was ever a real shot of 3% growth this year. Most economists would disagree.The median forecast of economists surveyed by Bloomberg is for 1.8% U.S. GDP growth this year. That number hasn’t been above 2% since May 2018, almost six month before the first Boeing Max jet crashed off the coast of Indonesia. The Max wasn’t grounded globally until five months after that. Even the most optimistic of the economists surveyed by Bloomberg haven’t called for 2020 GDP growth of 3%-plus since around last March, and there was little indication then that the Max crisis would drag out as long as it did or be as painful for the economy as it will end up being. Boeing initially said it would have all necessary paperwork in to the FAA by late March and didn’t signal it was even thinking about taking the drastic step of shutting down production until July. For the record, the median forecast for 2021 GDP, when Boeing Max production should be ramping back up, is 1.9%. It feels like Boeing is a convenient scapegoat for an administration that doesn’t care to admit its trade war with China dragged the manufacturing sector into a mild recession last year and that expectations for a swift recovery off of the eventual ceasefire signed in January were overblown. Even after the Max production halt was announced, White House economic adviser Larry Kudlow told CNBC Jan. 21 that U.S. GDP growth would get to 3% this year. In reality, plenty of industrial companies that have almost nothing to do with Boeing have been downbeat about their growth prospects in the coming year, calling for a still sluggish first half and a second-half recovery that many analysts expect to be relatively muted. “It took industrial activity a while to cool off and it will take a while to heat back up,” Jim Foote, CEO of railroad CSX Corp., said on the company’s earnings call last month. He didn’t mention the Max as a factor. Emerson Electric Co. and 3M Co. both announced fresh restructuring pushes to counter what remains a lackluster economic environment; neither of those companies are major suppliers to Boeing. The trade ceasefire agreed to in January will result in some rollback of tariffs: China said Thursday it will cut levies on some $75 billion of American imports later this month, while the U.S. will cut tariffs on about $120 billion of more consumer-facing goods. But the initial tariffs placed by the U.S. on some $250 billion of mostly manufacturing-related products from China remain in place. Meanwhile, China has been wishy-washy about how firm the purchasing commitments agreed to in the trade deal actually are, with caveats including market demand, quality and safety standards and, reportedly, the impact of the burgeoning coronavirus crisis. The U.S. economy likely isn’t going to grow at a 3% rate in 2020. But you can’t lose something you never had.(1) This particular problem has to do with an alert for the so-called trim system that moves the plane's nose up and down. It's not clear how much of a delay, if any, will result from this issue and Dickson also indicated a certification flight could occur within weeks.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 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Emerson Electric's (EMR) first-quarter fiscal 2020 revenues increase 0.1% on the back of impressive performance of its Automation Solutions segment.
Emerson Electric (EMR) delivered earnings and revenue surprises of 0.00% and -0.37%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Emerson's (EMR) fiscal Q1 earnings are likely to have gained from steady demand in process and hybrid end markets. Weak global discrete manufacturing market might have been a concern.
(Bloomberg Opinion) -- General Electric Co.’s shares have traded more on hope than hard math over the past year, but it looks like CEO Larry Culp’s turnaround efforts are starting to yield real results.Free cash flow is the key number to watch when the company reports earnings, and GE said Wednesday that it generated $2.3 billion from its industrial businesses over the course of 2019. That exceeded the high end of GE’s guidance range, which was updated twice over the course of the year from an initial call in March for free cash flow to be at best zero. Was Culp sandbagging expectations, or setting a low bar to start with and artfully managing to a positive surprise? (1) It’s a fine line, but either way, the strategy worked. GE shares climbed more than 50% in 2019 and shareholders were still wowed enough by Wednesday’s results to send the stock up an additional 10%.A lot of that optimism has to do with GE’s forecast for 2020. The company is projecting free cash flow will at least roughly match 2019’s performance and potentially rise to as high as $4 billion. That would still fall below what GE generated in 2018 amid depressed results, but would represent significant progress nonetheless, and exceeds most analysts’ estimates. The company plans to hold a meeting with investors this coming March to lay out its outlook in more detail. On the earnings call, however, Culp let a few details slip.The beleaguered power and renewables units will likely continue to burn cash in 2020, with power improving from the negative $1.5 billion in cash flow in 2019 and renewables seeing a deterioration from the negative $1 billion the unit saw last year. Aviation will be flat to up from the $4.4 billion level of 2019, with the return of Boeing Co.’s 737 Max the biggest source of variability. That leaves health care as the one question mark. We already know the unit will be losing cash flow from the biopharma business that’s being sold to Danaher Corp. Without biopharma, the health-care division would have generated about $1.2 billion in cash flow in 2019 and GE had previously guided for an increase in 2020. Taking all of that together, GE should be able to fall well within its guidance range, but the potential to rack up a similar string of outsize positive surprises is arguably more limited this year.Boeing’s Max is the biggest source of volatility for GE’s guidance, Culp said on the earnings call, and the company is currently modeling for a mid-2020 return of the jet, in line with Boeing’s most recent “best estimate.” Boeing also reported earnings today and, based on that timeline, announced a fresh $5.2 billion in charges tied to compensation for airlines and additional production costs. The company also said it anticipates $4 billion in “abnormal costs” for restarting production of the jet. That brings the total bill for the Max crisis to more than $18 billion, before accounting for any fines or legal penalties from numerous lawsuits and government investigations.GE makes the engines for the Max through its CFM International joint venture with Safran SA and expects to see its shipment rate cut in half in 2020 amid the production halt. Asked about the $1.4 billion drag on free cash flow from the Max grounding in 2019, outgoing Chief Financial Officer Jamie Miller implied free cash flow would have been that much higher without that impact. In that case, arguably 2020 results could also be higher, but there are a lot of moving pieces here and it feels like GE is being more prudent than deliberately conservative.The shift from optics to fundamentals is a welcome one. Culp’s task now is to keep the momentum going. In contrast to this time last year — when expectations could hardly have been much lower for GE — there’s now a fair amount of optimism reflected in the shares. After the stock pop on Wednesday, the company is currently valued at about 28 times its expected 2020 industrial free cash flow of at most $4 billion. That compares with about 20 times at Honeywell International Inc. and about 18 times for Emerson Electric Co. Put another way, much of GE’s anticipated progress in this multi-year turnaround is already priced in to the stock. But so far, Culp has proved the skeptics wrong and the optimists justified. So maybe there’s more room yet for hope.(1) To put that in perspective, consider that about a month before GE gave its initial comments on 2019, uber-bear JPMorgan Chase & Co. analyst Steve Tusa was forecasting $2.5 billion in industrial free cash flow for 2019 -- meaning the actual results are actually weaker than what even he had expected heading into the year.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 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Emerson Electric (EMR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
United Technologies' (UTX) fourth-quarter earnings and revenues beat estimates on the back of solid performance across most of its segments.
A. O. Smith's (AOS) fourth-quarter 2019 earnings and revenues decline year over year on account of weak performance in Rest of World segment due to its soft consumer demand in China.
General Electric's (GE) Power segment's fourth-quarter results are likely to reflect the adverse impacts of prevailing internal and external challenges. Initiatives to restructure the power portfolio might have benefitted.