Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And frankly, I was telling the Group just before this meeting, that’s really what makes us feel good, as we see another robust region with a capital cycle rival China in size |
| Less price, favorable NMI, three points of price-cost, green, very confident |
| So we feel pretty good |
| So the performance is good |
| Sequentially, orders will improve in the second half |
| So overall, we feel pretty good that it’s worst-case neutral, best case, slightly better than neutral |
| KOB3 remains strong at about 65% |
| So we feel very good |
| The underlying trends, the secular tailwinds around re-shoring energy, security and affordability, the software trend in our customers as they digitize their operations, and certainly the spend around sustainability and decarbonization remains very positive |
| We feel very good |
| And that should fuel some good momentum on the order side |
| Strong double-digits |
| We see great momentum, great team, good leadership |
| We feel good about that |
| The commercial agreement is working well, Aspen double-digit ACV growth |
| So consistent with what we said in our earnings call, I think we feel pretty good about where we sit |
| But the process hybrid capital cycle has been very disciplined, and with the tailwinds I described, we expect consistent growth in the process hybrid side of the business |
| And if that happens and when that happens, we’re going to be well positioned with Ovation |
| Western Europe printed a 10% underlying sales growth in Q1, and our Latin America business has been strong |
| If it does, Ovation is well positioned with the relationships we have to capitalize on |
| So we feel pretty good about China and North America has been low-single digit growth |
| So we feel pretty good about the pace of recovery |
| So we believe that, okay, there might be some slowdown, but it’s not a significant change, but the positive is the LNG moratorium or the pivot towards traditional energy investments will be a net favorable dynamic for Emerson |
| Surprisingly, we’re seeing good performance in Western Europe |
| As the orders turn, I think we’ll get the business positioned to continue to perform at a very high level going into ‘25 |
| In the case of a Biden win that continues as usual, the green initiatives will continue, we’ll benefit from it |
| So modest sequential gain, which is obviously driven by automotive, semiconductors, some of the industrial and commercial accounts we have exposure to and so we feel pretty confident about that |
| Pace of orders in Q2 are marginally better than Q1 |
| We’ll expect that business to come back, and we feel pretty good about it |
| So we feel pretty good about where SSE and DGM are as it relates to subscriptions and tokenizations and getting customers in the utility space to buy into that |
| Statement |
|---|
| The other three parts of the business are down 20%-plus |
| Lots of valid concern around the EV build out here in the US as far as the factories, there has been some push outs of semiconductor plants, which in my mind is that’s like when you say US manufacturing re-shoring, that’s the bulk of it |
| The orders are down, I think – Ram Krishnan 17% |
| So on a full year basis, orders will be down low-single digits for NI |
| And as you pointed out, we have the headwinds this year of the $250 million around NI costs, cost to achieve and then the $50 million for CapEx |
| Still down year-over-year |
| The business has obviously been through a bit of a downturn here |
| That’s a headwind |
| But on the free cash flow front, the – it’s been tough to tease out conversion of the core |
| But a lot of the companies like GM and Tesla are working with us on the battery validation side, which is where NI plays and we expect that is a temporary pause |
| But yes, we – the headwind I would call out would be this |
| So again, I guess, I don’t know the math of $1.6 billion, I think will be down low-single digits |
| Stephen Tusa So – but if I wanted to stick with conversion, it’s really that tax number is probably like the biggest one that’s out there? Mike Baughman That’s the biggest single headwind |
| But at some point, that’s going to come to light |
| The only big headwind there is tax related |
| I think it goes down – Mike and I were talking about it in the plane over the last 20 years, if you looked at our automation business, you take out the two black swan events of the financial crisis and COVID, there’s only been one decline in ‘15 and ‘16, and that was that followed a capital surge in 2010 to ‘14 |
| But it’s all really tough to call |
| It went down |
| But is there anything that’s, anything moving around, anything a little bit better, a little bit worse from an end market perspective? Ram Krishnan No |
| So we’re not concerned |
Please consider a small donation if you think this website provides you with relevant information