Rockwell Automation, Inc. (ROK - Free Report) reported adjusted earnings per share of $1.76 in third-quarter fiscal 2017 (ended Jun 30, 2017), up 14% from $1.55 in the prior-year quarter. Further, earnings outpaced the Zacks Consensus Estimate of $1.64, a positive earnings surprise of 7%. The year-over-year performance was driven by higher sales, lower tax rates, partially offset by higher incentive compensation.
Including one-time items, the company’s earnings came in at $1.67 per share, up 14% from the year-ago quarter figure of $1.46.
Total revenue was $1,599 million in the quarter, up 8.5% year over year and surpassed the Zacks Consensus Estimate of $1,573 million. Organic sales rose 8.2%, acquisitions contributed 1.2% while unfavorable foreign currency translations had an impact of 0.9%. Double-digit increases in Asia Pacific and Latin America contributed to the improvement. Sales in the U.S., Rockwell Automation’s largest market grew 10%, including the contribution from acquisitions. Transportation, food and beverage, as well as semiconductor were reportedly strong.
Cost of sales increased 7.5% year over year to $922 million. Gross profit advanced 10% to $677.7 million from $616.8 million in the year-ago quarter. Selling, general and administrative expenses increased 12% to $386.8 million.
Consolidated segment operating income was $337 million, up 8% from $311 million in the prior-year quarter. Segment operating margin was 21.1% in the quarter, flat from the prior-year quarter on the back of higher sales, partially negated by higher incentive compensation.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise