Rockwell Automation Meets on the Top Line, Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended March 31 (Q2), Rockwell Automation met expectations on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.


Gross margin improved, operating margin expanded, and net margin dropped.

Revenue details
Rockwell Automation logged revenue of $1.56 billion. The 11 analysts polled by S&P Capital IQ anticipated revenue of $1.57 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $1.46 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.16. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.27 per share on the same basis. GAAP EPS of $1.18 for Q2 were 3.5% higher than the prior-year quarter's $1.14 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.6%, 20 basis points better than the prior-year quarter. Operating margin was 15.7%, 60 basis points better than the prior-year quarter. Net margin was 10.7%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is $1.35.

Next year's average estimate for revenue is $6.40 billion. The average EPS estimate is $5.38.

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 $88.13.

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At the time thisarticle 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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