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Rockwell Automation Set to Report Q2 Earnings: What to Expect?

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Rockwell Automation Inc. (ROK - Free Report) is anticipated to witness declines in sales and earnings when it reports second-quarter fiscal 2025 results on May 7, before the opening bell.

The Zacks Consensus Estimate for Rockwell Automation’s earnings has been unchanged in the past 60 days at $2.09 per share. The consensus mark implies a 16.4% plunge from the year-ago actual. The consensus estimate for sales is pegged at $1.96 billion, indicating a 7.6% year-over-year decline.

 

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ROK’s Earnings Surprise History

Rockwell Automation’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 15.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

 

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What the Zacks Model Indicates for Rockwell Automation

Our proven model does not conclusively predict an earnings beat for ROK 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.

Earnings ESP: Rockwell Automation has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped ROK’s Q2 Performance

Rockwell Automation reported negative 7.6% organic growth in first-quarter fiscal 2025. The company noted a buildup of excess inventory among customers, particularly machine builders. Citing this, ROK stated that it did not expect a significant acceleration in order levels in fiscal 2025.

Also, after a prolonged contraction, the Institute for Supply Management’s manufacturing index showed expansion in January and February with readings of 50.9% and 50.3%, respectively. But this recovery was short-lived, with the index slipping into contraction again in March with a reading of 49%.

The New Orders Index also contracted in March (registering 45.2%) for the second consecutive month after three consecutive months of expansion. The Index was down 3.4 percentage points from the February figure of 48.6%. This is the lowest reading since May 2023 (when it was 43.4%). Customers have been pulling in orders due to anxiety about continued tariffs and pricing pressures. The impacts of this trend are also likely to get reflected in ROK’s order levels in the quarter under review.

Our model, thus, predicts an organic sales decline of 5.7% for the quarter, which is the primary reason for the expected decline in its top line.

ROK has faced margin headwinds in recent quarters, including higher logistics prices  due to increased energy prices and constrained air freight lanes. Additionally, increased spending on talent and growth, unfavorable mix, and currency are expected to have impacted its margins. The combination of lower sales and elevated costs is anticipated to have led to a decline in its earnings in the quarter.

Q2 Expectations for Rockwell Automation’s Segments

We expect the Intelligent Devices segment’s fiscal second-quarter sales to decline 14% year over year to $837 million. Our prediction for the segment’s operating profit is $142 million, indicating a year-over-year decrease of 11.5%.

Our model predicts the Software &  Control segment’s sales to be $535 million, indicating a 6.2% decline from the prior year’s actual. The segment’s operating profit, currently pinned at $118 million, implies a 19.1% plunge from the year-ago quarter’s reported figure.

We expect the Lifecycle Services segment’s sales to be $595 million, implying 2.2% growth from the prior-year period’s actual. The estimate for the segment’s operating profit is $95 million. The figure indicates a 2.4% decrease from the year-ago quarter’s figure.

ROK Stock’s Price Performance

In the past year, Rockwell Automation’s shares have dipped 6.9% compared with the industry’s 52.6% decline.

 

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Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Kinross Gold Corporation (KGC - Free Report) , scheduled to release first-quarter earnings on May 6, has an Earnings ESP of +11.07%.

The Zacks Consensus Estimate for Kinross Gold's earnings for the first quarter of 2025 is pegged at 21 cents, indicating an upsurge of 111% from the year-ago quarter’s actual. KGC currently carries a Zacks Rank #2. Kinross Gold has a trailing four-quarter average earnings surprise of 23.6%.

Emerson Electric Co. (EMR - Free Report) , expected to release earnings on May 7, currently has an Earnings ESP of +2.42% and a Zacks Rank of 3.

The consensus estimate for Emerson Electric’s earnings for the second quarter of fiscal 2025 is pegged at $1.42 per share, indicating year-over-year growth of 4.4%. EMR has a trailing four-quarter average surprise of 4.3%.

Trimble Inc. (TRMB - Free Report) , expected to release earnings on May 7, currently has an Earnings ESP of +5.44% and a Zacks Rank of 3.

The consensus estimate for Trimble’s earnings for the first quarter of 2025 is pegged at 59 cents per share, indicating a year-over-year dip of 7.8%. TRMB has a trailing four-quarter average surprise of 7.8%.

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