Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
800 Shades Creek Parkway
Suite 700
Birmingham, AL 35209
205-949-3500
Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
Earnings Summary
FYE Sep
2009A
2010E
2011E
EPS & P/E Summary
2009A 2009 Previous
2010E 2010 Previous
2011E 2011 Previous
EPS:
Q1
$0.60
--
$0.56
$0.48
--
--
Q2
$0.53
--
$0.57
$0.52
--
--
Q3
$0.56
--
$0.60
$0.58
--
--
Q4
$0.67
--
$0.67
$0.64
--
--
Full Year
$2.38
--
$2.40
$2.22
$2.75
--
P/E Ratio:
19.7
--
19.5
--
17.0
--
Fiscal Year Ends Sep
Rating:
Buy
Price: Close
$46.77
Price Target:
$47
52-wk Range:
$24.39-$46.77
Market Capitalization (M):
$35,313.1
Shares Outstanding (M):
755.0
Avg. Daily Vol. (000):
3,656.1
Dividend:
$1.32
Dividend Yield:
2.8%
Consensus EPS Current Year:
$2.16
Consensus EPS Next Year:
$2.61
Est. 3-yr. EPS Growth:
8% - 10%
Nicholas P. Heymann
Lawrence T. De Maria,
CFA
(212) 338-4703
(212) 338-4704
nheymann@sterneagee.com
ldemaria@sterneagee.com
Ben Elias, CFA
Samuel H. Eisner
(212) 338-4706
(212) 338-4705
belias@sterneagee.com
seisner@sterneagee.com
February 3, 2010 | 15 Pages
EMERSON ELECTRIC CO. (NYSE: EMR)
1QFY10 EPS DEMONSTRATE EMR'S ABILITY TO LEVERAGE
ITS SHORT CYCLE BETTER VOLUMES ACROSS SHARPLY
IMPROVED COST BASE; FY10 & FY11 EPS RAISED; BUY
1QFY10 EPS Demonstrate Leverage From FY09 Aggressive
Downsizing – EPS of $0.56 (ahead of SA’s $0.48 est. and cons.
$0.42) underscore: (1) better than expected sequential incremental
margin improvement at almost all of EMR’s businesses after
FY09’s aggressive operational restructuring and right-sizing; (2)
evidence of improving (or significantly less negative) revenues at
EMR’s shorter-cycle businesses such as Climate Technologies
and Appliance & Tools. Reported EPS did benef