Emerson Electric Co (NYSE:EMR) stock rose 2.71% (As on May 9, 11:32:11 AM UTC-4, Source: Google Finance) after the company reported a stronger-than-expected performance for its second quarter, with adjusted earnings per share (EPS) and revenue surpassing analyst projections. The company’s EBITDA also increased healthily, from $924 million to $1.13 billion year-on-year. Margin was also up by 140 basis points to 26%, from 24.6%. Pre-tax earnings were also up, from $639 million the previous year to $652 million.

EMR in the second quarter of FY 24 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share of $1.25. The company had reported the adjusted revenue growth of 17 percent to $4.38 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $4.29 million. This growth is attributed to a 5% rise in Intelligent Devices sales and a significant 56% surge in Software and Control sales, bolstered by the acquisition of National Instruments. The company’s backlog is of approximately $8.8 billion.

The company’s guidance for the third quarter of 2024 anticipates an adjusted EPS range of $1.38 to $1.42, which is slightly below the analyst consensus of $1.44. The projected net sales growth for the quarter is between 11% and 12.5%. The company’s full-year outlook for 2024 includes an anticipated net sales growth of 15% to 16% and an adjusted EPS range of $5.40 to $5.50. This guidance assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Underlying sales growth is expected to be in the range of 5.5%-6.5% for the year, 3-4.5% for Q3.

For the second quarter, Emerson also declared a quarterly cash dividend of $0.525 per share of common stock, payable on June 10, 2024, to stockholders of record as of May 17, 2024.

Meanwhile, the company has entered into a definitive agreement under which Emerson will acquire NI for $60 per share in cash at an equity value of $8.2 billion. The transaction is expected to close in the first half of Emerson’s fiscal 2024, subject to the completion of customary closing conditions, including regulatory approvals and approval by NI shareholders. Emerson expects to finance the transaction using available cash and liquidity, including approximately $8 billion of post-tax proceeds from the majority sale of Climate Technologies to Blackstone announced in October 2022, which is expected to close in the second calendar quarter of 2023.