Emerson Electric Co. (EMR) announced on Tuesday that its net profit for the third quarter rose on Tuesday, allowing it to increase dividend payments to shareholders.
The worldâ€™s largest maker of power equipment and utilities for oil companies stated that the quarterly net profit rose 26 percent to $526 million or $1.29 per share compared to same quarter a year ago. Revenue increased 19 percent to $5.52 billion. Both the net profit and revenue for the firm exceeded Wall Street expectations, which forecast the firm would make $1.20 in earnings per share and $5.27 billion in revenue.
â€œThis was a great finish to a very strong year,'' Credit Suisse analyst Nicole Parent wrote in her research notes today. She has an â€œoutperformâ€ rating on the stock.
The St. Louis firm also increased its quarterly cash dividend payment to $0.525 from $0.445 cents a share. In addition, the firm said that shares for the company will be split to 2-for-1.
At the companyâ€™s biggest division, process management, profit increased 43 percent to $291 million while sales rose 20 percent. The firm also sold a Buehler materials testing unit - once a part of industrial automation â€“ which allowed the firm to generate $31 million.
Shares of Emerson increased $6.01, or 7.28 percent, to $88.57 in mid-afternoon trading on New York Stock Exchange composite trading.