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What's in Store for Rockwell Automation's (ROK) Q4 Earnings?

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Rockwell Automation Inc. (ROK - Free Report) is scheduled to report fourth-quarter fiscal 2021 results, before the opening bell on Nov 2.

Q3 Performance

In the last reported quarter, Rockwell Automation’s earnings and revenues increased year over year and beat the Zacks Consensus Estimates on both counts.

The company has a trailing four-quarter average earnings surprise of 13.5%.

Q4 Estimates

The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $1.88 billion, indicating growth of 20% from the prior-year quarter. The same for earnings stands at $2.18, suggesting an improvement of 16.6% from the year-ago quarter. The estimate has moved south over the past 30 days.

Factors to Note

Rockwell Automation has been witnessing improvement in its order levels for the past few quarters, driven by robust demand for core automation platforms and Information Solutions & Connected Services (IS/CS). In the last reported quarter, the company delivered record orders and crossed the threshold of $2 billion — higher than pre-pandemic levels. Improved manufacturing activities and rising industrial production have also contributed to the company’s order book. Considering these factors, Rockwell Automation is likely to have witnessed improved order levels over the course of the fiscal fourth quarter as well.

The company has been aiding few pharmaceutical and medical device companies to scale up their production of critical products and testing capacity amid the pandemic. It has been supporting the packaging and distribution requirements for vaccines. Demand for packaged food and beverages has been shooting up owing to the global health crisis. All these factors, along with the company’s recent acquisitions, are expected to have aided the top line in the to-be-reported quarter.

These above-mentioned benefits might have been offset by the supply-chain headwinds currently faced by the industry. Inflated costs for commodities, components and freight services are also expected to have weighed on the company’s margins in the quarter to be reported. The company’s focus on process improvement, functional streamlining, material cost savings and manufacturing productivity is likely to have negated some of these impacts.

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for Rockwell Automation this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Rockwell Automation is -3.17%.

Zacks Rank: Rockwell Automation currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Share Price Performance

Over the past year, Rockwell Automation’s shares have gained 36.2% compared with the industry’s rally of 34.9%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks Poised to Beat Earnings Estimates

Here are some Industrial Product stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Tetra Tech, Inc. (TTEK - Free Report) has an Earnings ESP of +0.50% and carries a Zacks Rank of 2, at present.

Deere & Company (DE - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +5.55%.

OI Glass, Inc. (OI - Free Report) has an Earnings ESP of +1.05% and holds a Zacks Rank #3, currently.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

OI Glass, Inc. (OI) - free report >>

Tetra Tech, Inc. (TTEK) - free report >>

Deere & Company (DE) - free report >>

Rockwell Automation, Inc. (ROK) - free report >>