Yahoo Finance Emerson to Support Total E&P Denmark in Tyra Gas Project
Emerson Electric Co. EMR, on Nov 25, announced that it has clinched a deal from Total E&P Denmark A/S to offer wellhead pressure monitoring technology for the latter’s Tyra gas field redevelopment project. Following the announcement, its share price increased 1% to close at $74.43 on Tuesday.
Emerson’s technology will help in boosting the security during the multi-year redevelopment project, designed to expand the life of the largest gas field of Denmark. It will assist Total E&P Denmark in replacing the current wellhead platforms by installing new and elevated topsides, which will guarantee continuous production from the gas field. Total E&P Denmark is committed to invest about $3.3 billion in the redevelopment project, the largest of its kind in the Danish North Sea.
Emerson will be responsible for offering in excess of 200 Rosemount wireless pressure transmitters for installation on the four riser platforms. These devices will help in transmitting data to two Emerson DeltaV PK controllers, which will be installed on the accommodation platforms. Upon completion, the redevelopment project will facilitate Tyra in producing more than 200 million barrels of oil.
Our Take
Emerson is experiencing persistent softness in the global discrete manufacturing market due to soft automotive, semiconductor, packaging and textiles end markets. For fiscal 2020 (ending Sep 30, 2020), it predicts sales to be in the range of 3% decline to 1% increase year over year compared with 6% rise predicted earlier.
Also, rising costs and expenses have been an issue for Emerson over the past few quarters. The company recorded year-over-year increase of 6.7% and 0.5% in the cost of sales in the third quarter of fiscal 2019 (ended Jun 30, 2019) and fourth quarter of fiscal 2019 (ended Sep 30, 2019), respectively.
The Zacks Rank #5 (Strong Sell) stock has gained 9.3% over the past year compared with the industry’s rally of 8%.
Stocks to Consider
Some better-ranked stocks from the Zacks Industrial Products sector are Kaman Corporation KAMN, Brady Corporation BRC and Energous Corporation WATT. While Kaman sports a Zacks Rank #1 (Strong Buy), Brady and Energous carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kaman delivered average positive earnings surprise of 7.72% in the trailing four quarters.
Brady delivered average positive earnings surprise of 9.67% in the trailing four quarters.
Energous pulled off average positive earnings surprise of 6.67% in the trailing four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Emerson Electric Co. (EMR) : Free Stock Analysis Report
Energous Corporation (WATT) : Free Stock Analysis Report
Kaman Corporation (KAMN) : Free Stock Analysis Report
Brady Corporation (BRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
