Rockwell Automation Earnings: Here’s Why Shares are Up Now

Rockwell Automation Inc. (NYSE:ROK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.24%.

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Rockwell Automation Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.66% to $1.33 in the quarter versus EPS of $1.16 in the year-earlier quarter.

Revenue: Decreased 2.45% to $1.52 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rockwell Automation Inc. reported adjusted EPS income of $1.33 per share. By that measure, the company beat the mean analyst estimate of $1.29. It missed the average revenue estimate of $1.59 billion.

Quoting Management: Keith D. Nosbusch, chairman and chief executive officer, said, “I am pleased with 11 percent earnings per share growth despite the 2 percent sales decline. Solid sales growth in the Americas, with declines in EMEA and Asia-Pacific, reflect industrial markets that remain uneven around the world. Free cash flow was very good in the quarter and we announced an 11 percent dividend increase earlier this month. We have increased our dividend by almost 80 percent over the last four years. We are confident in the sustainability of our cash flows and remain committed to returning cash to shareowners.”

Key Stats (on next page)…

Revenue increased 2.26% from $1.49 billion in the previous quarter. EPS increased 8.13% from $1.23 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 $1.43 to a profit $1.44. For the current year, the average estimate has moved down from a profit of $5.57 to a profit of $5.54 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)