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Emerson (EMR) Sells Daniel Measurement Business to Turnspire

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Emerson Electric Co. (EMR - Free Report) recently completed the sale of its Daniel Measurement and Control business to Turnspire Capital Partners. The divestment deal was announced in July 2021.

Emerson’s shares declined 1.4% yesterday to eventually close the trading session at $104.05.

Headquartered in New York, Turnspire Capital Partners is an investment management company engaged in investing in businesses from various industries.

Inside the Headlines

Emerson’s Daniel Measurement and Control business provides flow and energy measurement technologies and services to the natural gas and refined hydrocarbon industries. The business has a diverse portfolio of products consisting of orifice plates and plate seals, flow nozzles, venturi tubes, orifice meter tubes and profiler flow conditioner, among others.

The divestment does not incorporate Daniel’s fiscal & custody transfer systems business that includes its ultrasonic flowmeter unit.

The divestment is in line with Emerson’s strategy of restructuring its business portfolio and concentrating more on core businesses. This will likely facilitate the company to concentrate on and efficiently direct its resources to data-rich, software-enabled technologies in diverse and growing end markets.

Zacks Rank, Price Performance and Estimate Trend

The company with a market capitalization of $62.2 billion, currently carries a Zacks Rank #3 (Hold). In the quarters ahead, it is poised to benefit from strength across its medical, life science, food and beverage, and residential end markets. Also, acquisitions made by the company over time are likely to drive its performance. However, high restructuring expenses and debt level are major concerns for the company.

Zacks Investment Research
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In the past three months, Emerson’s stock has gained 6.7% compared with the industry’s growth of 6.3%.

The Zacks Consensus Estimate for the company’s earnings is pegged at $4.07 for fiscal 2021 (ending September 2021) and $4.50 for fiscal 2022 (ending September 2022), reflecting growth of 3.6% and 3.9%, respectively, from the 60-day-ago figures.

Key Picks

Some better-ranked stocks from the same space are ABB Ltd. , AZZ Inc. (AZZ - Free Report) and Eaton Corporation plc (ETN - Free Report) . All these companies carry a Zacks Rank #2 (Buy) at present. You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABB pulled off a positive earnings surprise of 19.00%, on average, in the trailing four quarters.

AZZ pulled off a positive earnings surprise of 21.24%, on average, in the trailing four quarters.

Eaton pulled off a positive earnings surprise of 10.87%, on average, in the trailing four quarters.


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