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Update: Emerson Electric - Transformation Continues As Company Shows Strong Earnings Growth And Margin Expansion

In February 2015, Emerson Electric (NYSE:EMR) announced fiscal first-quarter 2015 earnings per share of 75 cents, a 15 percent increase from the year-ago quarter, as the company benefited from margin growth, positive comparable corporate expenses and currency effects. EMR's total revenue decreased 0.3 percent from the year-ago quarter to $5.587 billion. Underlying sales, however, increased 6 percent and were offset by divestitures and adverse currency effects. The company's process management division revenues increased 3 percent due to continued order strength and a strong order backlog. Its industrial automation division recorded flat revenues from the year-ago quarter. Revenues in its network power division decreased 14 percent. Revenues in the company's climate technologies division increased 15 percent due to strength in the residential air conditioning business. EMR's commercial and residential solutions business revenue increased 3 percent due to strong U.S. market conditions. It revised its underlying sales growth estimates for fiscal 2015 to 3 percent and 5 percent from 4 percent to 5 percent. Shares rose about 1 percent on the earnings announcement, as the company showed strong earnings growth on revenues that missed estimates. Its transformation strategy is allowing the company to record strong margin expansion in each of its divisions. In addition, a positive environment in the U.S. market is likely to support EMR's future earnings growth. The negative impact of divestitures and adverse currency effects, however, are likely to hinder its results…