2 Stocks Seeing Lower Prices Following Earnings Reports

Rockwell Automation Inc. (NYSE:ROK) reported its results for the first quarter.  Net income for Rockwell Automation Inc. rose to $183.3 million ($1.27 per share) vs. $150.1 million ($1.04 per share) in the same quarter a year earlier. This marks a rise of 22.1% from the year earlier quarter. Revenue rose 7.9% to $1.47 billion from the year earlier quarter. ROK beat the mean analyst estimate of $1.21 per share. It fell short of the average revenue estimate of $1.51 billion.

Commenting on the results, Keith D. Nosbusch, chairman and chief executive officer, said, “We had great earnings growth on good sales growth in the quarter. Segment margins expanded and EPS growth of 22 percent was very strong. Regional sales growth rates varied, particularly in the solutions businesses. Process had a great quarter with 22 percent sales growth. In this macroeconomic environment, I am pleased with the solid start to the fiscal year.”

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), AMETEK, Inc. (NYSE:AME), Parker-Hannifin Corp. (NYSE:PH), Honeywell Intl. Inc. (NYSE:HON), Perceptron, Inc. (NASDAQ:PRCP), Aspen Technology, Inc. (NASDAQ:AZPN), Emerson Electric Co. (NYSE:EMR), Baldwin Technology Co. (AMEX:BLD), Hollysys Automation Tech. Ltd (NASDAQ:HOLI), and Newport Corporation (NASDAQ:NEWP).

TE Connectivity Ltd. (NYSE:TEL) reported its results for the first quarter.  Net income for the diversified electronics company fell to $260 million (61 cents per share) vs. $265 million (59 cents per share) a year earlier. This is a decline of 1.9% from the year earlier quarter. Revenue rose 3.4% to $3.31 billion from the year earlier quarter. TEL reported adjusted net income of 66 cents per share. By that measure, the company fell short of mean estimate of 70 cents per share. It fell short of the average revenue estimate of $3.44 billion.

“The first quarter was a slow start to our fiscal year due to lower-than-expected demand in our Communications and Industrial Solutions segment and our Telecom Networks business. This more than offset continued strength in our Transportation Solutions segment,” said TE Connectivity Chief Executive Officer Tom Lynch. “We delivered adjusted operating margins above 12 percent despite the lower sales volume due to pricing and cost reduction actions we implemented in the second half of last year.”

Competitors to Watch: Molex Incorporated (NASDAQ:MOLX), Amphenol Corporation (NYSE:APH), Thomas & Betts Corporation (NYSE:TNB), AVX Corporation (NYSE:AVX), Spectrum Control, Inc. (NASDAQ:SPEC), Methode Electronics Inc. (NYSE:MEI), Littelfuse, Inc. (NASDAQ:LFUS), Corning Incorporated (NYSE:GLW), and Cablitec Holding AG (NYSE:GNI).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com