Rockwell Automation Earnings: A Mixed Bag

Rockwell Automation Inc. (NYSE:ROK) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.19%.

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Rockwell Automation Inc. Earnings Cheat Sheet

Results: Net income decreased -11.95% to $161.4 million ($1.23 per diluted share) in the quarter versus a net gain of $183.3 million in the year-earlier quarter.

Revenue: Rose 1.09% to $1.49 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rockwell Automation Inc. reported adjusted net income of $1.23 per share. By that measure, the company missed the mean analyst estimate of $1.27. It beat the average revenue estimate of $1.48 billion.

Quoting Management: Keith D. Nosbusch, chairman and chief executive officer, said, “Total company sales were in line with our expectations for the quarter, but results by region were mixed. Strong growth in Latin America and the U.S. was mostly offset by declines in the other regions, consistent with underlying market conditions. Solutions order rates picked up in the quarter and we rebuilt backlog. Operating margin and free cash flow were both very good. Overall, I am pleased with the good start to the fiscal year…

…Given first quarter results and our current assessment of market conditions, we are reaffirming our outlook for fiscal 2013. We expect sales to be in the range of $6.35 to $6.65 billion, with corresponding Adjusted EPS of $5.35 to $5.75. Stabilization of macroeconomic indicators and forecasts, coupled with our rebuilt backlog, reinforce our expectations of stronger growth in the second half of the year compared to the first half. We will continue to monitor business conditions closely and pace our investments accordingly.”

Key Stats:

Revenue decreased 10.46% from $1.66 billion in the previous quarter. Net income decreased 17.32% from $195.2 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.26 to a profit $1.3. For the current year, the average estimate has moved up from a profit of $5.46 to a profit of $5.57 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)