Emerson (EMR, Financial) has revised its fiscal year 2025 projections, now accounting for full ownership of AspenTech. The company anticipates a revenue increase of approximately 4%, up from the previous range of 1.5% to 3.5%. This adjustment mirrors a stable foreign exchange impact, with underlying sales expected to remain at the midpoint.
The company reports a decline in GAAP earnings per share (EPS) due to costs related to transactions. However, the midpoint for adjusted EPS guidance has seen an upward revision. Emerson's projections for operating and free cash flows are set at $3.5 billion to $3.6 billion and $3.1 billion to $3.2 billion, respectively. This is despite encountering approximately $0.2 billion in transaction-related challenges, thanks to a strong operational performance.
For 2025, Emerson plans to return about $2.3 billion to its shareholders, comprising $1.1 billion in share repurchases and $1.2 billion in dividends.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Emerson Electric Co (EMR, Financial) is $130.25 with a high estimate of $160.00 and a low estimate of $99.00. The average target implies an upside of 21.42% from the current price of $107.27. More detailed estimate data can be found on the Emerson Electric Co (EMR) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Emerson Electric Co's (EMR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Emerson Electric Co (EMR, Financial) in one year is $126.40, suggesting a upside of 17.83% from the current price of $107.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Emerson Electric Co (EMR) Summary page.
