Emerson Electric Reduces 2009 Profit Forecast for the Second TimeEmerson Electric ( EMR) revised its full-year 2009 profit forecast for the second time this year, citing lower spending by its customers across multiple business segments. The St. Louis-based company, which makes a wide variety of commercial and industrial electrical devices, said that it now sees full-year 2009 earnings of $2.40 to $2.60 per share. On average, Wall Street analysts expect $2.47 per share. Emerson had previously revised its outlook in February to a range of $2.70 to $2.95 per share. The company said it expects full-year sales to decline 9% to 11% from 2008 levels, also disclosing that sales fell 20% to 25% from December through February. Emerson said it plans to spend $1 billion in 2009 on acquisitions, while recording $200 million to $250 million in restructuring charges. Despite the seemingly bad news, Emerson shares rose $1.12, or 3.68%, in late-morning trading Tuesday. We had removed shares of EMR from our "Recommended" list back on Aug.18, when shares traded at $49.43. The company has a new dividend yield of 4.27%, based on last night's closing stock price of $30.89. The stock has technical support in the $22-$24 price area. If the shares can firm up, we see overhead resistance in the $35-$39 price area. We would remain on the sidelines for now. Emerson Electric is not recommended at this time, holding a Dividend.com DARST Rating of 3.2 out of 5 stars.
Ventas Announces Public Offering, Reaffirms GuidanceSenior housing and health care REIT Ventas ( VTR) on Monday announced a public offering of stock and senior notes.
Citigroup Tells Investors to Sell Shares of Archer Daniels MidlandShares of Archer Daniels Midland ( ADM) were down over 9% in early trading after Citigroup downgraded shares of the agriculture name to sell. The analyst sees slowing agricultural demand and overcapacity as negatively impacting volumes and margins in the company's oil seed processing and agricultural services units. We have avoided shares of ADM since our early June coverage began, and the stock was trading at $37.20. The company has a 1.95% dividend yield, based on last night's closing stock price of $28.71. The stock has technical support in the $19-$21 price area. If the shares can rebound from today's drop, we see overhead resistance in the $29-$32 price area. We would remain on the sidelines for now. Archer Daniels Midland is not recommended at this time, holding a Dividend.com DARST Rating of 3.1 out of 5 stars.