Rockwell Automation Beats Up on Analysts Yet Again

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Rockwell Automation (NYS: ROK) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Rockwell Automation missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Rockwell Automation reported revenue of $1.5 billion. The 10 analysts polled by S&P Capital IQ expected to see a top line of $1.5 billion. Sales were 7.9% higher than the prior-year quarter's $1.4 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.27. The 13 earnings estimates compiled by S&P Capital IQ forecast $1.20 per share. GAAP EPS of $1.27 for Q1 were 22% higher than the prior-year quarter's $1.04 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42%, 220 basis points better than the prior-year quarter. Operating margin was 17.4%, 300 basis points better than the prior-year quarter. Net margin was 12.4%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.6 billion. On the bottom line, the average EPS estimate is $1.27.

Next year's average estimate for revenue is $6.4 billion. The average EPS estimate is $5.34.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwell Automation is outperform, with an average price target of $82.60.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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