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Rockwell Automation (ROK) to Acquire CUBIC to Boost Portfolio
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Rockwell Automation, Inc. (ROK - Free Report) recently announced that it has signed a definitive agreement to acquire Bronderslev, Denmark-based CUBIC, which specializes in modular systems for the construction of electrical panels. CUBIC’s innovative motor control solutions will strengthen ROK’s portfolio of leading intelligent motor control technologies.
The transaction, subject to customary regulatory approvals, is expected to close by this year-end. If the deal comes through, CUBIC will become part of ROK’s Intelligent Devices operating segment. The combination of CUBIC’s efficient and flexible modular systems and Rockwell Automation’s intelligent devices and industry expertise will benefit customers by offering faster time to market. This, in turn, enables broader plant-wide applications for intelligent motor control, and generates smart data to increase sustainability and productivity.
CUBIC is expected to report more than $75-million sales in fiscal 2022 (ended Sep 30). It will bring new customers and partners in hybrid and process industries to ROK. By leveraging CUBIC’s established partner model, Rockwell Automation will be able to build an expanded partner network for intelligent motor control offerings in Asia, Europe and Latin America. The buyout will also expand ROK’s market reach in renewable energy and data center solutions.
ROK is focused on buyouts to augment its information solutions and high-value services offerings and capabilities, and expand its global presence or enhance process expertise. Rockwell Automation’s Plex buyout last year boosted its software revenues and strengthened its annual recurring revenue streams.
The acquisition was aligned with Rockwell Automation’s strategy to grow Connected Enterprise and support customers’ increasing preference for cloud solutions to improve agility, resilience and sustainability in their operations. ROK is gaining from its previous acquisitions of ASEM, Kalypso and Fiix. At Fiix, it is witnessing strong double-digit sales growth, led by both new logo wins and expansion deals.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Rockwell Automation have fallen 23.5%, in line with the industry.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the Industrial Products sector are Tenaris (TS - Free Report) , CECO Environmental , W.W. Grainger Inc. (GWW - Free Report) . While TS flaunts a Zacks Rank #1 (Strong Buy), CECE and GWW carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. Earnings estimates have increased 8% for fiscal 2022 in the past 60 days. TS’ shares have risen 38% in the past year.
CECO Environmental delivered a trailing four-quarter earnings surprise of 29.1%, on average. Earnings estimates have increased 17% for fiscal 2022 in the past 60 days. The CECE stock has gained 39% in the past year.
Grainger’s earnings surprise in the last four quarters was 7.9%, on average. In the past 60 days, GWW’s earnings estimates have increased 4% for 2022. The stock has gained 27% in the past year.
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Rockwell Automation (ROK) to Acquire CUBIC to Boost Portfolio
Rockwell Automation, Inc. (ROK - Free Report) recently announced that it has signed a definitive agreement to acquire Bronderslev, Denmark-based CUBIC, which specializes in modular systems for the construction of electrical panels. CUBIC’s innovative motor control solutions will strengthen ROK’s portfolio of leading intelligent motor control technologies.
The transaction, subject to customary regulatory approvals, is expected to close by this year-end. If the deal comes through, CUBIC will become part of ROK’s Intelligent Devices operating segment. The combination of CUBIC’s efficient and flexible modular systems and Rockwell Automation’s intelligent devices and industry expertise will benefit customers by offering faster time to market. This, in turn, enables broader plant-wide applications for intelligent motor control, and generates smart data to increase sustainability and productivity.
CUBIC is expected to report more than $75-million sales in fiscal 2022 (ended Sep 30). It will bring new customers and partners in hybrid and process industries to ROK. By leveraging CUBIC’s established partner model, Rockwell Automation will be able to build an expanded partner network for intelligent motor control offerings in Asia, Europe and Latin America. The buyout will also expand ROK’s market reach in renewable energy and data center solutions.
ROK is focused on buyouts to augment its information solutions and high-value services offerings and capabilities, and expand its global presence or enhance process expertise. Rockwell Automation’s Plex buyout last year boosted its software revenues and strengthened its annual recurring revenue streams.
The acquisition was aligned with Rockwell Automation’s strategy to grow Connected Enterprise and support customers’ increasing preference for cloud solutions to improve agility, resilience and sustainability in their operations. ROK is gaining from its previous acquisitions of ASEM, Kalypso and Fiix. At Fiix, it is witnessing strong double-digit sales growth, led by both new logo wins and expansion deals.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Rockwell Automation have fallen 23.5%, in line with the industry.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the Industrial Products sector are Tenaris (TS - Free Report) , CECO Environmental , W.W. Grainger Inc. (GWW - Free Report) . While TS flaunts a Zacks Rank #1 (Strong Buy), CECE and GWW carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenaris delivered a trailing four-quarter earnings surprise of 34%, on average. Earnings estimates have increased 8% for fiscal 2022 in the past 60 days. TS’ shares have risen 38% in the past year.
CECO Environmental delivered a trailing four-quarter earnings surprise of 29.1%, on average. Earnings estimates have increased 17% for fiscal 2022 in the past 60 days. The CECE stock has gained 39% in the past year.
Grainger’s earnings surprise in the last four quarters was 7.9%, on average. In the past 60 days, GWW’s earnings estimates have increased 4% for 2022. The stock has gained 27% in the past year.