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In the last reported quarter, Rockwell Automation’s earnings and revenues improved year over year. The top and bottom lines also beat their respective Zacks Consensus Estimate.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 8.95%.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $15.2 billion, indicating an improvement of 11.7% from the prior-year quarter. The same for earnings is pinned at $3.78 per share, indicating a 31.2% increase from the year-ago quarter. The company’s earnings estimates have moved up 2% in the past 30 days.
Factors to Note
In the past few quarters, Rockwell Automation has witnessed an improvement in order levels. Low order cancellation rates indicate the solid underlying demand from customers across many industries and regions.
Ongoing capital investments in several end markets, coupled with higher automation and digital transformation, are expected to have supported solid order levels across all segments in the quarter under review.
However, the company’s bottom-line performance is likely to have been hurt by supply-chain challenges and cost inflation that persisted throughout the quarter. The manufacturing supply chain remained strained owing to sharp rise in demand and shortage of electronic components.
Also, higher logistics costs owing to elevated energy expenses and constrained air freight lanes are likely to have impacted margins. Higher sequential spending on new product development, resiliency and the company’s annual merit increase timing are also expected to have weighed on ROK’s margin performance. The company’s price increase actions are likely to have mitigated the impacts of inflationary pressures and contributed to margin expansion.
Segmental Expectations
The Zacks Consensus Estimate for the Intelligent Devices segment’s second-quarter fiscal 2023 revenues is pegged at $932 million, indicating an improvement of 15% from the prior-year period. The same for the segment’s operating profit is pinned at $200 million, indicating a year-over-year increase of 69%.
The Zacks Consensus Estimate for the Software & Control segment’s sales is currently pegged at $616 million, indicating year-over-year growth of 15%. The same for the segment’s operating profit is pinned at $184 million, indicating an increase of 39% from the year-ago quarter.
The consensus mark for the Lifecycle Services segment’s sales is pegged at $499 million, indicating growth of 7% from the prior-year period. The same for the segment’s operating profit is pinned at $37 million, indicating growth of 9% from the year-ago quarter.
What the Zacks Model Indicates
Our proven model predicts an earnings beat for Rockwell Automation this time around. 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. This is precisely the case here.
Earnings ESP: Rockwell Automation has an Earnings ESP of +2.54%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Share Price Performance
Image Source: Zacks Investment Research
In the past year, Rockwell Automation’s shares have lost 0.6% compared with the industry’s 0.9% decline.
Other Stocks to Consider
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to come up with an earnings beat in their upcoming releases:
The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share, indicating a year-over-year increase of 6.1%.
The same for IR’s quarterly revenues is pinned at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter average earnings surprise of 8.5%.
A. O. Smith Corporation (AOS - Free Report) is set to release first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, which is in line with the prior-year quarter’s reported number.
The same for AOS’ quarterly revenues is pinned at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter average earnings surprise of 3.2%.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share, indicating year-over-year growth of 3.8%.
The same for quarterly revenues is pinned at $4 billion, implying growth of 0.6% from the prior-year period. ITW has a trailing four-quarter average earnings surprise of 0.9%.
Image: Bigstock
What's in Store for Rockwell Automation (ROK) in Q2 Earnings?
Rockwell Automation Inc. (ROK - Free Report) is scheduled to report second-quarter fiscal 2023 results on Apr 27, before the opening bell.
Q1 Performance
In the last reported quarter, Rockwell Automation’s earnings and revenues improved year over year. The top and bottom lines also beat their respective Zacks Consensus Estimate.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 8.95%.
Rockwell Automation, Inc. Price and EPS Surprise
Rockwell Automation, Inc. price-eps-surprise | Rockwell Automation, Inc. Quote
Q2 Estimates
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $15.2 billion, indicating an improvement of 11.7% from the prior-year quarter. The same for earnings is pinned at $3.78 per share, indicating a 31.2% increase from the year-ago quarter. The company’s earnings estimates have moved up 2% in the past 30 days.
Factors to Note
In the past few quarters, Rockwell Automation has witnessed an improvement in order levels. Low order cancellation rates indicate the solid underlying demand from customers across many industries and regions.
Ongoing capital investments in several end markets, coupled with higher automation and digital transformation, are expected to have supported solid order levels across all segments in the quarter under review.
However, the company’s bottom-line performance is likely to have been hurt by supply-chain challenges and cost inflation that persisted throughout the quarter. The manufacturing supply chain remained strained owing to sharp rise in demand and shortage of electronic components.
Also, higher logistics costs owing to elevated energy expenses and constrained air freight lanes are likely to have impacted margins. Higher sequential spending on new product development, resiliency and the company’s annual merit increase timing are also expected to have weighed on ROK’s margin performance. The company’s price increase actions are likely to have mitigated the impacts of inflationary pressures and contributed to margin expansion.
Segmental Expectations
The Zacks Consensus Estimate for the Intelligent Devices segment’s second-quarter fiscal 2023 revenues is pegged at $932 million, indicating an improvement of 15% from the prior-year period. The same for the segment’s operating profit is pinned at $200 million, indicating a year-over-year increase of 69%.
The Zacks Consensus Estimate for the Software & Control segment’s sales is currently pegged at $616 million, indicating year-over-year growth of 15%. The same for the segment’s operating profit is pinned at $184 million, indicating an increase of 39% from the year-ago quarter.
The consensus mark for the Lifecycle Services segment’s sales is pegged at $499 million, indicating growth of 7% from the prior-year period. The same for the segment’s operating profit is pinned at $37 million, indicating growth of 9% from the year-ago quarter.
What the Zacks Model Indicates
Our proven model predicts an earnings beat for Rockwell Automation this time around. 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. This is precisely the case here.
Earnings ESP: Rockwell Automation has an Earnings ESP of +2.54%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Share Price Performance
Image Source: Zacks Investment Research
In the past year, Rockwell Automation’s shares have lost 0.6% compared with the industry’s 0.9% decline.
Other Stocks to Consider
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to come up with an earnings beat in their upcoming releases:
Ingersoll Rand Inc. (IR - Free Report) is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share, indicating a year-over-year increase of 6.1%.
The same for IR’s quarterly revenues is pinned at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter average earnings surprise of 8.5%.
A. O. Smith Corporation (AOS - Free Report) is set to release first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, which is in line with the prior-year quarter’s reported number.
The same for AOS’ quarterly revenues is pinned at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter average earnings surprise of 3.2%.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share, indicating year-over-year growth of 3.8%.
The same for quarterly revenues is pinned at $4 billion, implying growth of 0.6% from the prior-year period. ITW has a trailing four-quarter average earnings surprise of 0.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.