Emerson Elec Co Stock Price, News & Analysis

Emerson (NYSE: EMR) reported a strong third fiscal quarter ending June 30, 2022, with net sales of $5.0 billion, reflecting a 7% year-over-year increase. The company's GAAP EPS rose by 48% to $1.54, and adjusted EPS increased by 16% to $1.38, aided by the AspenTech transaction. Underlying orders grew by 10% while the Americas saw a 14% rise. However, operating cash flow fell 33% to $740 million due to increased working capital and supply chain issues. Emerson also announced the sale of InSinkErator for $3.0 billion and updated its 2022 outlook, increasing EPS guidance to between $5.25 and $5.35.

Whirlpool Corporation (NYSE: WHR) has agreed to acquire InSinkErator from Emerson Electric Co. (NYSE: EMR) for $3.0 billion in cash. InSinkErator, the leader in food waste disposal with a 70% market share, is expected to generate $650 million in sales and $170 million in EBITDA for the fiscal year ending September 30, 2022. The deal, set to close in Q4 2022, aims to enhance Whirlpool's portfolio and is projected to add $1.25 to EPS in fiscal 2023. The acquisition will be initially funded through liquidity, with debt financing to follow.

Emerson (NYSE: EMR) has announced the sale of its InSinkErator business to Whirlpool Corporation (NYSE: WHR) for $3.0 billion. As of March 31, 2022, InSinkErator generated $595 million in revenue and $166 million in EBITDA, marking a transaction value of 18.1x EBITDA. This move is part of Emerson’s strategy to diversify and enhance its growth portfolio. The deal is expected to close in Emerson's 2023 fiscal year, pending regulatory approvals. This acquisition allows Whirlpool to expand its product lineup in the home appliance sector.

Emerson and Ameren Missouri have partnered to provide energy-saving technology, showcasing the Sensi™ smart thermostat, recognized with the ENERGY STAR Partner of the Year – Sustained Excellence Award. Ameren customers can purchase an energy savings bundle for $1, which includes a Sensi thermostat and an Emporia smart plug. The product promotes efficiency through scheduling, remote access, and compatibility with major smart home platforms.

The board of directors of Emerson (NYSE: EMR) has declared a quarterly cash dividend of $0.515 per share, with a payment date set for September 9, 2022. Shareholders on record as of the close of business on August 12, 2022 will receive this dividend. Emerson, based in St. Louis, Missouri, focuses on providing innovative solutions across various markets including industrial, commercial, and residential sectors.

Emerson (NYSE: EMR) announced the acquisition of Micromine, an end-to-end mining software provider, through its majority-owned subsidiary AspenTech (NASDAQ: AZPN). This strategic move aims to diversify AspenTech's software portfolio into the metals and mining market, supporting digital transformation and sustainability goals. The acquisition underscores Emerson's commitment to building a higher growth and diversified portfolio. Micromine's solutions are utilized at over 2,000 mining sites globally, enhancing operational efficiency across the mining value chain.

Emerson (NYSE: EMR) has joined RE100, a global initiative aiming for 100% renewable electricity, targeting 2030 for full compliance. The company plans to source 25% of its electricity from renewable resources in 2022, leveraging solar, wind, geothermal, and hydropower. Emerson's strategy aims to achieve net zero operations by 2030, with electricity usage accounting for 75% of its Scope 1 and 2 emissions. The engagement with RE100 emphasizes Emerson's commitment to sustainable practices and encourages other businesses to invest in renewable energy.

Aspen Technology, Inc. (NASDAQ: AZPN) has appointed Robert 'Bob' Beauchamp to its Board of Directors, filling the final seat following the recent transaction with Emerson (NYSE: EMR). With over 30 years of experience in industrial technology and M&A, Beauchamp previously served as Chairman and CEO of BMC Software. CEO Antonio Pietri highlighted Beauchamp's leadership credentials as a significant asset for AspenTech's growth and sustainability initiatives. Beauchamp joins the Nominating and Corporate Governance Committee, aiming to leverage AspenTech's expertise in transforming industrial software.

Emerson (NYSE: EMR) is set to release its third-quarter results on August 9, 2022, before market open. This follows the announcement of AspenTech’s financial results on August 8, 2022. An investor conference call will take place on the same day at 9 a.m. ET to discuss the results. Interested parties can access the live call and view presentation materials through Emerson’s investor website, with a replay available for three months thereafter. As a global technology and software company, Emerson focuses on innovative solutions across industrial, commercial, and residential sectors.