StockCall Study on Emerson Electric and Mueller Water Products: Industrial Components Companies Back on Track
by PR Newswire
LONDON, February 26, 2013 /PRNewswire/ --
Industrial equipment sector is back on track with the improvement in economy. The companies have reported encouraging results and the stock prices followed the suit, scoring good growth. Emerson Electric Co. (NYSE: EMR) announced strong Q1 results and provided healthy outlook for the fiscal year. The stock has also performed well. Conversely, Mueller Water Products Inc. (NYSE: MWA) generated good institutional interest. The company is banking on the revival of housing sector and construction activity improvement. Mueller Water Products Inc. also reported good quarterly performance and its stock also provided good returns to the investors. StockCall free coverage on Emerson Electric and Mueller Water Products is available upon registration at
Mueller Water Products Inc. Announces Quarterly Results
Mueller Water Products stock is popular among hedge fund investors and major investors like Chuck Royce and David Tepper holds stake in the company. The company stock surged 86 percent in the past 12 months, proving its investors right. The company deals in transmission and distribution of water. Register now and get access to the free analysis on Mueller Water Products Inc. at
It reported $245.1 million in revenue for its fiscal first quarter of the year while analysts were expecting the revenue to be at $231.1 million. It also beat its previous year performance by 14 percent. However, its EPS missed the mark with -$0.02 per share figure. Consensus estimates were pegged at 1 cent per share in earnings. Mueller Water Products managed to improve its operating and net margins.
The company is expected to benefit from the housing sector revival and uptick in construction activities. Mueller Water Products provides a good investment opportunity. The stock offers subdued dividend yield at 1.29 percent, but this more than makes up for it with a steep increase in its market value. However, its payout ratio is a mere 25 percent, presenting scope for dividend increase in future.
Emerson Electric Co. Provides Good Outlook
Emerson Electric Co. is a well diversified industrial technology company and its stock recently hit its new 52-week high. The company also offers 2.94 percent dividend yield. For its first quarter of the year, Emerson Electric reported 62 cents per share in net income, up from 50 cents per share in net income it had reported for the corresponding quarter of the last year. Its revenue also increased 5 percent to $5.55 billion. Download the free technical research on Emerson Electric Co. by signing up at
Emerson Electric also provided strong outlook as it expects its full year revenue to grow by 2 to 5 percent. Earnings for the full year are expected to be in the range of $3.53 and $3.63 per share. On the basis of this forecast, the stock is likely to perform well in the future, despite its 8 percent run up so far this year.
The company has considerable overseas interest and will benefit from the economic revival in emerging markets like China. Emerson Electric draws a major chunk of its revenue for its process management business and two third of this revenue is derived from the outside of the U.S. The segment has performed well and improvement in European economy is likely to drive the revenue up. Emerson Electric also has strong balance sheet position, providing its good cushion against any headwinds.
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