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.

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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, “The 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.”

Key Stats:

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.

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