Goldman Sachs Adjusts Emerson Electric Estimates

Goldman Sachs reports that it is adjusting its FY4Q10 EPS estimate for Emerson Electric Company

to $0.80 from $0.84 and its FY2010 estimate to $2.69 from $2.73 for the impact of recent acquisitions and divestitures (Chloride, EMC, LANDesk), which EMR detailed in September. “At that time, recurring FY2010 EPS guidance moved to $2.50-$2.60 from $2.60-$2.70 to account for $0.05 of full year impact from the Chloride acquisition and $0.05 for the reclassification of EMC to discontinued operations and excluded a one-time $0.18-$0.20 gain on the EMC sale,” Goldman Sachs writes. “We also tweak our FY2011 EPS estimate to $3.30 from $3.35 for additional Chloride acquisition costs, with no change to recurring revenue or margin assumptions or our fundamental view.” Goldman Sachs maintains its Neutral rating and $58 (16.6X CY2011E P/E), 12-month price target but says that it continues to have a positive long-term view of the company. Emerson Electric currently trades for $53.91.