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Rockwell Automation (ROK) Q4 Earnings Beat Estimates, Up Y/Y
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Rockwell Automation Inc. (ROK - Free Report) delivered adjusted earnings of $2.11 in fourth-quarter fiscal 2018 (ended Sep 30, 2018), up 25% from the prior-year quarter figure of $1.69. The bottom line also surpassed the Zacks Consensus Estimate of $2.03.
Including one-time items, the company reported earnings of $2.80 per share compared with earnings of $1.57 per share registered in the year-ago quarter.
Total revenues came in at $1,730 million, up 4% year over year but missed the Zacks Consensus Estimate of $1,778 million. Organic sales rose 7%. Foreign currency translations reduced sales by 2.2% and divestitures in the prior year reduced sales by 1.4%.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Cost of sales decreased 2% year over year to $997 million. Gross profit increased 13% to $733 million from $648 million reported in the year-ago quarter. Selling, general and administrative expenses dropped 1.7% year over year to $418 million.
Consolidated segment operating income totaled $359 million, up 27% from $284 million recorded in the prior-year quarter. Segment operating margin was 20.8% in the fiscal fourth quarter, up 380 basis points from the year-earlier quarter.
Segment Results
Architecture & Software: Net sales rose 5% year over year to $787 million in the fiscal fourth quarter. While organic sales were up 7%, currency translation reduced sales by 2.3%. Segment operating earnings came in at $220 million compared with $178 million recorded in the prior year. Segment operating margin was 27.9% compared with 23.7% witnessed in the year-ago quarter.
Control Products & Solutions: Net sales climbed 3% year over year to $942 million in the reported quarter. While organic sales increased 7.5%, currency translation reduced sales by 2.1% and the prior-year divestiture reduced sales by 2.5%. Segment operating earnings increased 32% to $140 million from $106 million in the year-ago quarter. Segment operating margin came in at 14.8% compared with 11.5% recorded in the prior-year quarter.
Financials
As of Sep 30, 2018, cash and cash equivalents totaled $619 million, down from $1,411 million as of Sep 30, 2017. As of Sep 30, 2018, total debt was $1,776 million, down from $1,844 million as of Sep 30, 2017.
Cash flow from operations in fiscal 2018 summed $1,300 million compared with $1,034 million in fiscal 2017. Return on invested capital was 48% as of Sep 30, 2018, up from 39% as of Sep 30, 2017.
During the reported quarter, Rockwell Automation repurchased 2.2 million shares for $396 million. As of the quarter end, $1,108.4 million was available under the existing share-repurchase authorization.
Fiscal 2018 Performance
Rockwell Automation reported adjusted earnings per share of $8.11 in fiscal 2018, up 20% from $6.76 per share recorded last year. The reported figure also surpassed the Zacks Consensus Estimate of $8.03 and came above management’s guided range of $7.90-$8.10. Including one-time items, the bottom line came in at $4.21, down 34% from $6.35 recorded in fiscal 2017.
Revenues jumped 5.6% year over year to $6.7 billion from $6.3 billion in fiscal 2017. The top line came in line with the Zacks Consensus Estimate.
Guidance
For fiscal 2019, Rockwell Automation expects its adjusted EPS at $8.85-$9.25. It also anticipates organic sales to grow 3.7-6.7%. Moreover, focus on productivity, actions to mitigate the impact of tariffs and favorable macroeconomic indicators are expected to drive the company’s growth. However, global trade tensions remain a woe.
Share Price Performance
In a year’s time, Rockwell Automation has underperformed its industry. Shares of the company have lost 12% compared with the industry’s 11% decline.
Atkore has a long-term earnings growth rate of 10%. Its shares have rallied around 10% in the past year.
Enersys has a long-term earnings growth rate of 10%. Shares of the company have rallied 25% in a year.
Encore Wire has a long-term earnings growth rate of 10%. Shares of the company have gained 15% in a year’s time.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Rockwell Automation (ROK) Q4 Earnings Beat Estimates, Up Y/Y
Rockwell Automation Inc. (ROK - Free Report) delivered adjusted earnings of $2.11 in fourth-quarter fiscal 2018 (ended Sep 30, 2018), up 25% from the prior-year quarter figure of $1.69. The bottom line also surpassed the Zacks Consensus Estimate of $2.03.
Including one-time items, the company reported earnings of $2.80 per share compared with earnings of $1.57 per share registered in the year-ago quarter.
Total revenues came in at $1,730 million, up 4% year over year but missed the Zacks Consensus Estimate of $1,778 million. Organic sales rose 7%. Foreign currency translations reduced sales by 2.2% and divestitures in the prior year reduced sales by 1.4%.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. Price, Consensus and EPS Surprise | Rockwell Automation, Inc. Quote
Operational Update
Cost of sales decreased 2% year over year to $997 million. Gross profit increased 13% to $733 million from $648 million reported in the year-ago quarter. Selling, general and administrative expenses dropped 1.7% year over year to $418 million.
Consolidated segment operating income totaled $359 million, up 27% from $284 million recorded in the prior-year quarter. Segment operating margin was 20.8% in the fiscal fourth quarter, up 380 basis points from the year-earlier quarter.
Segment Results
Architecture & Software: Net sales rose 5% year over year to $787 million in the fiscal fourth quarter. While organic sales were up 7%, currency translation reduced sales by 2.3%. Segment operating earnings came in at $220 million compared with $178 million recorded in the prior year. Segment operating margin was 27.9% compared with 23.7% witnessed in the year-ago quarter.
Control Products & Solutions: Net sales climbed 3% year over year to $942 million in the reported quarter. While organic sales increased 7.5%, currency translation reduced sales by 2.1% and the prior-year divestiture reduced sales by 2.5%. Segment operating earnings increased 32% to $140 million from $106 million in the year-ago quarter. Segment operating margin came in at 14.8% compared with 11.5% recorded in the prior-year quarter.
Financials
As of Sep 30, 2018, cash and cash equivalents totaled $619 million, down from $1,411 million as of Sep 30, 2017. As of Sep 30, 2018, total debt was $1,776 million, down from $1,844 million as of Sep 30, 2017.
Cash flow from operations in fiscal 2018 summed $1,300 million compared with $1,034 million in fiscal 2017. Return on invested capital was 48% as of Sep 30, 2018, up from 39% as of Sep 30, 2017.
During the reported quarter, Rockwell Automation repurchased 2.2 million shares for $396 million. As of the quarter end, $1,108.4 million was available under the existing share-repurchase authorization.
Fiscal 2018 Performance
Rockwell Automation reported adjusted earnings per share of $8.11 in fiscal 2018, up 20% from $6.76 per share recorded last year. The reported figure also surpassed the Zacks Consensus Estimate of $8.03 and came above management’s guided range of $7.90-$8.10. Including one-time items, the bottom line came in at $4.21, down 34% from $6.35 recorded in fiscal 2017.
Revenues jumped 5.6% year over year to $6.7 billion from $6.3 billion in fiscal 2017. The top line came in line with the Zacks Consensus Estimate.
Guidance
For fiscal 2019, Rockwell Automation expects its adjusted EPS at $8.85-$9.25. It also anticipates organic sales to grow 3.7-6.7%. Moreover, focus on productivity, actions to mitigate the impact of tariffs and favorable macroeconomic indicators are expected to drive the company’s growth. However, global trade tensions remain a woe.
Share Price Performance
In a year’s time, Rockwell Automation has underperformed its industry. Shares of the company have lost 12% compared with the industry’s 11% decline.
Zacks Rank & Other Stocks to Consider
Rockwell Automation carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same sector include Atkore International Group Inc. (ATKR - Free Report) , Enersys (ENS - Free Report) and Encore Wire Corporation (WIRE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore has a long-term earnings growth rate of 10%. Its shares have rallied around 10% in the past year.
Enersys has a long-term earnings growth rate of 10%. Shares of the company have rallied 25% in a year.
Encore Wire has a long-term earnings growth rate of 10%. Shares of the company have gained 15% in a year’s time.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>