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.
Unlocking Rockwell Automation (ROK) International Revenues: Trends, Surprises, and Prospects
Read MoreHide Full Article
Have you assessed how the international operations of Rockwell Automation (ROK - Free Report) performed in the quarter ended March 2024? For this industrial equipment and software maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of ROK's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $2.13 billion, experiencing a decline of 6.6% year over year. Next, we'll explore the breakdown of ROK's international revenue to understand the importance of its overseas business operations.
A Dive into ROK's International Revenue Trends
During the quarter, Asia Pacific contributed $269.9 million in revenue, making up 12.7% of the total revenue. When compared to the consensus estimate of $330.27 million, this meant a surprise of -18.28%. Looking back, Asia Pacific contributed $275.6 million, or 13.4%, in the previous quarter, and $334.2 million, or 14.7%, in the same quarter of the previous year.
EMEA generated $398.9 million in revenues for the company in the last quarter, constituting 18.8% of the total. This represented a surprise of -19.48% compared to the $495.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $388.3 million (18.9%), and in the year-ago quarter, it contributed $486.5 million (21.4%) to the total revenue.
Latin America accounted for 7.7% of the company's total revenue during the quarter, translating to $163.6 million. Revenues from this region represented a surprise of +268.94%, with Wall Street analysts collectively expecting $-96.84 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $141.1 million (6.9%) and $144.1 million (6.3%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Rockwell Automation, as projected by Wall Street analysts, is expected to reach $2.14 billion, reflecting a decline of 4.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 15.7% or $337.17 million, EMEA 23.2% or $496.53 million and Latin America 9.3% or $198.93 million.
For the full year, the company is projected to achieve a total revenue of $8.53 billion, which signifies a fall of 5.9% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 15.3% ($1.3 billion), EMEA at 22.3% ($1.9 billion) and Latin America at 6.7% ($568.18 million).
In Conclusion
Rockwell Automation's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
The stock has declined by 3.9% over the past month compared to the 1.3% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes Rockwell Automation, has decreased 0.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 2.2% relative to the S&P 500's 4.3% increase. Throughout this period, the sector overall has witnessed a 7.2% increase.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Unlocking Rockwell Automation (ROK) International Revenues: Trends, Surprises, and Prospects
Have you assessed how the international operations of Rockwell Automation (ROK - Free Report) performed in the quarter ended March 2024? For this industrial equipment and software maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of ROK's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $2.13 billion, experiencing a decline of 6.6% year over year. Next, we'll explore the breakdown of ROK's international revenue to understand the importance of its overseas business operations.
A Dive into ROK's International Revenue Trends
During the quarter, Asia Pacific contributed $269.9 million in revenue, making up 12.7% of the total revenue. When compared to the consensus estimate of $330.27 million, this meant a surprise of -18.28%. Looking back, Asia Pacific contributed $275.6 million, or 13.4%, in the previous quarter, and $334.2 million, or 14.7%, in the same quarter of the previous year.
EMEA generated $398.9 million in revenues for the company in the last quarter, constituting 18.8% of the total. This represented a surprise of -19.48% compared to the $495.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $388.3 million (18.9%), and in the year-ago quarter, it contributed $486.5 million (21.4%) to the total revenue.
Latin America accounted for 7.7% of the company's total revenue during the quarter, translating to $163.6 million. Revenues from this region represented a surprise of +268.94%, with Wall Street analysts collectively expecting $-96.84 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $141.1 million (6.9%) and $144.1 million (6.3%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Rockwell Automation, as projected by Wall Street analysts, is expected to reach $2.14 billion, reflecting a decline of 4.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 15.7% or $337.17 million, EMEA 23.2% or $496.53 million and Latin America 9.3% or $198.93 million.
For the full year, the company is projected to achieve a total revenue of $8.53 billion, which signifies a fall of 5.9% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 15.3% ($1.3 billion), EMEA at 22.3% ($1.9 billion) and Latin America at 6.7% ($568.18 million).
In Conclusion
Rockwell Automation's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Rockwell Automation, bearing a Zacks Rank #5 (Strong Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Rockwell Automation's Recent Stock Price Trends
The stock has declined by 3.9% over the past month compared to the 1.3% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes Rockwell Automation, has decreased 0.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 2.2% relative to the S&P 500's 4.3% increase. Throughout this period, the sector overall has witnessed a 7.2% increase.