Emerson Electric Co (NYSE:EMR) stock rose 7.16% (As on November 6, 11:31:29 AM UTC-4, Source: Google Finance) after the company proposed to buy the rest of AspenTech, opens new tab that it does not own at a valuation of $15.1 billion, as the company looks to sharpen its focus on industrial automation. The company in 2021 merged its software units with smaller rival Aspen Technology and took control of about 55% of the combined entity. Emerson offered $240 per share in cash for the rest of the industrial software technology provider, and would pay about $6.53 billion for the stake, according to a Reuters calculation. Emerson has also started to explore options, including a cash sale for its Safety & Productivity unit, which comprises businesses not related to its automation portfolio.

Meanwhile, the Intelligent Devices segments’ net sales were $3.28 billion, up 4% year over year. Final Control’s sales increased 8% year over year to $1.2 billion. Measurement & Analytical generated sales of $1.1 billion, up 7% year over year. Discrete Automation’s sales totaled $643 million, reflecting a decline of 3% on a year-over-year basis. Safety & Productivity’s sales decreased 1% year over year to $352 million. The Software and Control Automation Solutions segment generated net sales of $1.4 billion, up 41% year over year. Control Systems & Software reported sales of $780 million, reflecting an increase of 9% year over year. AspenTech generated net sales of $215 million, down 13% year over year. Test & Measurement sales were $360 million.

EMR in the third quarter of FY 24 has reported the adjusted earnings per share of $1.48, beating the analysts’ estimates for the adjusted earnings per share of $1.47, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 13 percent to $4.62 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue by 0.94%. Adjusted EBITA margin was 24.6% compared with 24.2% in the year-earlier quarter. Exiting the fiscal fourth quarter, Emerson had cash and cash equivalents of $3.6 billion compared with $8.1 billion at the end of fiscal 2023 (ended September 2023).

The company expects its 2025 profit per share to be between $5.85 and $6.05, the midpoint of which is above analysts’ average estimate of $5.89, according to data compiled by LSEG. Emerson will buy back about $2.0 billion of its common stock in fiscal year 2025, with about $1.0 billion expected to be completed in the first quarter.