Emerson Electric jumps on Q3 beat, proposal to buy rest of AspenTech shares

Investing.com -- Emerson (NYSE:EMR) Electric shares jumped more than 5% in premarket trading Tuesday after the engineering services provider reported better-than-expected Q4 results and issued upbeat guidance for the fiscal 2025.

For Q4 2024, the company posted earnings per share (EPS) of $1.48, narrowly beating the analyst estimate of $1.47. Quarterly revenue reached $4.62 billion, also surpassing expectations of $4.57 billion.

By segment, Intelligent Devices sales totaled $3.28 billion, outperforming the estimate of $3.21 billion, while Software (ETR:SOWGn) and Control sales came in at $1.36 billion, above the anticipated $1.34 billion.

Underlying sales rose by 4%, compared to an estimated 2.94% increase.

Looking ahead, Emerson provided guidance for the first quarter of 2025, with expected EPS between $1.25 and $1.30, aligning closely with the consensus forecast of $1.28.

For the full fiscal year 2025, Emerson anticipates EPS in the range of $5.85 to $6.05, significantly above the consensus estimate of $5.47.

The company also announced a slight increase in its quarterly dividend, raising it by 0.5% to 52.75 cents per share.

Along with the earnings report, Emerson announced it has proposed to acquire the remaining outstanding shares of Aspen Technology (NASDAQ:AZPN) at $240 per share in cash.

Shares in AspenTech climbed around 3% in the premarket trade.

Emerson currently owns approximately 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 plans to finance the acquisition through cash on hand and committed lines of credit.