Rockwell Automation Earnings: The Stock is Getting Crushed
S&P 500 (NYSE:SPY) component Rockwell Automation, Inc. (NYSE:ROK) reported higher profit for the second quarter as revenue showed growth. Rockwell Automation Inc. provides industrial automation power, control and information solutions to customers in the manufacturing sector.
Rockwell Automation Earnings Cheat Sheet for the Second Quarter
Results: Net income for the industrial electrical equipment company rose to $166.4 million ($1.14/share) vs. $137 million (95 cents/share) in the same quarter a year earlier. A rise of 21.5% from the year earlier quarter.
Revenue: Rose 25.7% to $1.46 billion YoY.
Actual vs. Wall St. Expectations: ROK beat the mean analyst estimate of $1.12/share. Estimates ranged from $1.04 per share to $1.21 per share.
Quoting Management: Keith D. Nosbusch, chairman and chief executive officer, said, â€œThe strong results we saw in the first quarter continued in the second quarter. Sales growth was broad-based, operating margin continued to expand, and we generated strong free cash flow. Both earnings per share from continuing operations and return on invested capital were record highs for the company. I am pleased with our ability to capitalize on solid underlying market conditions as we execute our growth and performance strategy.â€
The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 23.1%, with the biggest boost coming in the first quarter when revenue rose 27.9% from the year earlier quarter.
The company has now seen net income rise in three-straight quarters. In the first quarter, net income rose 96% and in the fourth quarter of the last fiscal year, the figure rose more than fourfold.
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).
Today’s Performance: Shares of ROK are trading at $87.50 as of April 27, 2011 at 11:15 AM ET, down 10.5% from the previous close.