We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rockwell Automation Inc. (ROK - Free Report) reported adjusted earnings per share (EPS) of $2.66 in third-quarter fiscal 2022 (ended Jun 30, 2022), surpassing the Zacks Consensus Estimate of $2.31. The bottom line improved 15% year over year on higher sales, including price increases and strong operating performance.
Including other one-time items, earnings came in at $2.55 per share in the fiscal third quarter compared with the prior-year quarter’s $2.32 per share.
Total revenues were $1,969 million, up 6.5% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1,9517 million. Organic sales in the quarter were up 7.1%. Acquisitions contributed 2.5% to sales growth, while currency translation had a negative impact of 3.1%. Total orders were up 17% year on year.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Cost of sales increased 7.6% year over year to around $1,166 million. Gross profit rose 5% year over year to $802 million. Selling, general and administrative expenses moved up 1.2% year over year to $442 million.
Consolidated segment operating income totaled $409 million, up 11% from the prior-year quarter. The total segment operating margin was 20.8% in the fiscal third quarter, higher than the prior-year period’s 19.9%. Gains from higher sales and lower incentive compensation were partially offset by higher investment spend.
Segment Results
Intelligent Devices: Net sales amounted to $878 million during the fiscal third quarter, down 0.5% year over year. Segment operating earnings totaled $173 million compared with the year-earlier quarter’s $194 million. Segment operating margin decreased to 19.7% in the quarter compared with the year-ago quarter’s 21.9%.
Software & Control: Net sales climbed 19% year over year to $607 million in the reported quarter. Segment operating earnings surged 48.6% year over year to $191 million. Segment operating margin was 31.4% compared with 25.2% in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $484 million in the reported quarter, up 6% year over year. Segment operating earnings totaled $45.4 million compared with the prior-year quarter’s $46.8 million. Segment operating margin was 9.4% in the reported quarter compared with the year-earlier quarter’s 10.3%.
Financials
As of the end of the third quarter of fiscal 2022, cash and cash equivalents were around $483 million compared with $662 million as of the end of fiscal 2021. Total debt was around $4.1 billion at the end of the reported quarter compared with $3.9 billion at the fiscal 2021-end.
Cash flow from operations through the nine months period ended on Jun 30, 2022, was $424 million compared with the prior-year quarter’s $1,057 million. Return on invested capital was 12.8% as of Jun 30, 2022.
During the quarter under review, ROK repurchased around 0.8 million shares for $176 million. As of the end of the quarter, $1.3 billion was available under the existing share-repurchase authorization.
Fiscal 2022 Guidance
Rockwell Automation expects strong double-digit year-over-year and sequential sales growth in the fourth quarter of fiscal 2022. It expects reported sales growth at 10.5-12.5% for fiscal 2022. The company had earlier provided a range of 11% to 15% for fiscal 2022. Organic sales growth is projected at 10-12%, down from its prior expectation of 10-14%, reflecting ongoing supply chain volatility. Adjusted earnings per share guidance for fiscal 2022 is expected between $9.30 and $9.70 compared with its prior provided range of $9.20 to $9.80.
Share Price Performance
Image Source: Zacks Investment Research
In the past year, Rockwell Automation’s shares have fallen 18.7% compared with the industry’s decline of 26.2%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Greif Inc. (GEF - Free Report) , Titan International and Valmont Industries (VMI - Free Report) . Both GEF and TWI sport a Zacks Rank #1 (Strong Buy), while VMI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 12.6% in the past year.
Titan International has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 43%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. TWI’s shares have soared 102.7% in a year.
Valmont Industries has an expected earnings growth rate of around 27% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4% in the past 60 days.
Valmont Industries has a trailing four-quarter earnings surprise of 13.7%, on average. VMI’s shares have gained 10% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Rockwell Automation (ROK) Q3 Earnings & Sales Beat Estimates
Rockwell Automation Inc. (ROK - Free Report) reported adjusted earnings per share (EPS) of $2.66 in third-quarter fiscal 2022 (ended Jun 30, 2022), surpassing the Zacks Consensus Estimate of $2.31. The bottom line improved 15% year over year on higher sales, including price increases and strong operating performance.
Including other one-time items, earnings came in at $2.55 per share in the fiscal third quarter compared with the prior-year quarter’s $2.32 per share.
Total revenues were $1,969 million, up 6.5% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1,9517 million. Organic sales in the quarter were up 7.1%. Acquisitions contributed 2.5% to sales growth, while currency translation had a negative impact of 3.1%. Total orders were up 17% year on year.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
Operational Update
Cost of sales increased 7.6% year over year to around $1,166 million. Gross profit rose 5% year over year to $802 million. Selling, general and administrative expenses moved up 1.2% year over year to $442 million.
Consolidated segment operating income totaled $409 million, up 11% from the prior-year quarter. The total segment operating margin was 20.8% in the fiscal third quarter, higher than the prior-year period’s 19.9%. Gains from higher sales and lower incentive compensation were partially offset by higher investment spend.
Segment Results
Intelligent Devices: Net sales amounted to $878 million during the fiscal third quarter, down 0.5% year over year. Segment operating earnings totaled $173 million compared with the year-earlier quarter’s $194 million. Segment operating margin decreased to 19.7% in the quarter compared with the year-ago quarter’s 21.9%.
Software & Control: Net sales climbed 19% year over year to $607 million in the reported quarter. Segment operating earnings surged 48.6% year over year to $191 million. Segment operating margin was 31.4% compared with 25.2% in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $484 million in the reported quarter, up 6% year over year. Segment operating earnings totaled $45.4 million compared with the prior-year quarter’s $46.8 million. Segment operating margin was 9.4% in the reported quarter compared with the year-earlier quarter’s 10.3%.
Financials
As of the end of the third quarter of fiscal 2022, cash and cash equivalents were around $483 million compared with $662 million as of the end of fiscal 2021. Total debt was around $4.1 billion at the end of the reported quarter compared with $3.9 billion at the fiscal 2021-end.
Cash flow from operations through the nine months period ended on Jun 30, 2022, was $424 million compared with the prior-year quarter’s $1,057 million. Return on invested capital was 12.8% as of Jun 30, 2022.
During the quarter under review, ROK repurchased around 0.8 million shares for $176 million. As of the end of the quarter, $1.3 billion was available under the existing share-repurchase authorization.
Fiscal 2022 Guidance
Rockwell Automation expects strong double-digit year-over-year and sequential sales growth in the fourth quarter of fiscal 2022. It expects reported sales growth at 10.5-12.5% for fiscal 2022. The company had earlier provided a range of 11% to 15% for fiscal 2022. Organic sales growth is projected at 10-12%, down from its prior expectation of 10-14%, reflecting ongoing supply chain volatility. Adjusted earnings per share guidance for fiscal 2022 is expected between $9.30 and $9.70 compared with its prior provided range of $9.20 to $9.80.
Share Price Performance
Image Source: Zacks Investment Research
In the past year, Rockwell Automation’s shares have fallen 18.7% compared with the industry’s decline of 26.2%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Greif Inc. (GEF - Free Report) , Titan International and Valmont Industries (VMI - Free Report) . Both GEF and TWI sport a Zacks Rank #1 (Strong Buy), while VMI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 12.6% in the past year.
Titan International has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 43%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. TWI’s shares have soared 102.7% in a year.
Valmont Industries has an expected earnings growth rate of around 27% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4% in the past 60 days.
Valmont Industries has a trailing four-quarter earnings surprise of 13.7%, on average. VMI’s shares have gained 10% in the past year.