Emerson Electric Shares Surge

Emerson (NYSE:EMR) Electric shares jumped over 5% in premarket trading Tuesday after the engineering services provider reported strong Q4 results and optimistic guidance for fiscal 2025.

Q4 2024 Results

For Q4 2024, the company achieved earnings per share (EPS) of $1.48, slightly surpassing the analyst estimate of $1.47. Quarterly revenue reached $4.62 billion, exceeding expectations of $4.57 billion.

Segment Performance

• Intelligent Devices sales totaled $3.28 billion, beating the estimate of $3.21 billion.
• Software and Control sales were $1.36 billion, above the anticipated $1.34 billion.

Underlying sales increased by 4%, compared to a forecasted 2.94% rise.

Future Guidance

Emerson has provided guidance for Q1 2025, expecting EPS between $1.25 and $1.30, closely matching the consensus forecast of $1.28. For the full fiscal year 2025, the company anticipates EPS in the range of $5.85 to $6.05, significantly ahead of the consensus estimate of $5.47.

Additionally, Emerson announced a slight increase in its quarterly dividend, raising it by 0.5% to $0.5275 per share.

Acquisition Proposal

Along with the earnings report, Emerson proposed to acquire the remaining outstanding shares of Aspen Technology (NASDAQ:AZPN) at $240 per share in cash. Shares in AspenTech rose around 3% in premarket trading.

Emerson currently owns 57% of AspenTech’s outstanding common stock. The offer represents a 35% premium over AspenTech’s undisturbed share price of $177.84 as of August 6, implying a fully diluted market capitalization of $15.3 billion and an enterprise value of $15.1 billion. Emerson intends to finance this acquisition through cash on hand and committed lines of credit.