Emerson Electric (NYSE:EMR) Shares Gap Up Following Earnings Beat

Emerson Electric Co. (NYSE:EMR - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $107.27, but opened at $114.96. Emerson Electric shares last traded at $109.64, with a volume of 1,316,245 shares trading hands.

The industrial products company reported $1.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.07. The company had revenue of $4.43 billion during the quarter, compared to analysts' expectations of $4.42 billion. Emerson Electric had a return on equity of 12.08% and a net margin of 13.74%. The company's revenue for the quarter was up 1.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.36 earnings per share.

Emerson Electric Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Friday, May 16th will be given a dividend of $0.5275 per share. This represents a $2.11 annualized dividend and a dividend yield of 1.94%. Emerson Electric's dividend payout ratio (DPR) is presently 50.36%.

Analyst Upgrades and Downgrades

Several brokerages have commented on EMR. Daiwa America upgraded shares of Emerson Electric to a "strong-buy" rating in a research report on Tuesday, January 28th. Citigroup cut their target price on shares of Emerson Electric from $132.00 to $119.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Barclays dropped their price target on Emerson Electric from $105.00 to $99.00 and set an "underweight" rating on the stock in a report on Thursday, April 10th. StockNews.com lowered Emerson Electric from a "buy" rating to a "hold" rating in a research note on Thursday, May 1st. Finally, Wells Fargo & Company upped their target price on Emerson Electric from $140.00 to $142.00 and gave the company an "overweight" rating in a report on Thursday, February 6th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Emerson Electric has an average rating of "Moderate Buy" and an average target price of $131.67.

Institutional Trading of Emerson Electric

A number of institutional investors and hedge funds have recently modified their holdings of the company. Orion Capital Management LLC bought a new position in shares of Emerson Electric in the fourth quarter worth about $25,000. Stephens Consulting LLC bought a new position in Emerson Electric in the 4th quarter worth approximately $25,000. Vega Investment Solutions acquired a new position in shares of Emerson Electric during the fourth quarter worth approximately $27,000. Sugar Maple Asset Management LLC bought a new stake in shares of Emerson Electric in the fourth quarter valued at approximately $27,000. Finally, Murphy & Mullick Capital Management Corp acquired a new stake in shares of Emerson Electric in the fourth quarter worth $28,000. 74.30% of the stock is currently owned by institutional investors and hedge funds.

Emerson Electric Trading Up 1.5 %

The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.17 and a current ratio of 1.54. The company's 50 day moving average is $107.15 and its 200 day moving average is $118.47. The stock has a market capitalization of $61.42 billion, a price-to-earnings ratio of 25.98, a PEG ratio of 2.49 and a beta of 1.26.

Emerson Electric Company Profile

Emerson Electric Co, a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.

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