Rockwell Automation, Inc. (ROK - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Nov 7, before the opening bell. In the last reported quarter, Rockwell Automation’s both top and bottom line declined year over year. Let’s see how things are shaping up prior to the fourth quarter announcement.
Our proven model does not conclusively show that Rockwell Automation will be able to pull a surprise this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. That is not the case here as you will see below.
Zacks ESP: Rockwell Automation’s Earnings ESP stands at -0.67%. This is because the company’s Most Accurate estimate is $1.48, whereas the Zacks Consensus Estimate is pegged higher at $1.49. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Rockwell Automation currently has a Zacks Rank #4 (Sell). As it is, we caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of Rockwell Automation’s Zacks Rank #4 combined with a negative Earnings ESP makes an earnings beat unlikely this quarter.
In the last reported quarter, the company posted a positive earnings surprise of 6.16%. Notably, Rockwell Automation has delivered a positive earnings surprise of 2.34% on an average over the last four quarters.
ROCKWELL AUTOMT Price and EPS Surprise