Rockwell Automation Inc. Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component Rockwell Automation Inc. (NYSE:ROK) reported net income above Wall Street’s expectations for the fourth quarter. Rockwell Automation 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 Fourth Quarter

Results: Net income for Rockwell Automation Inc. rose to $201.8 million ($1.39 per share) vs. $131.3 million (91 cents per share) in the same quarter a year earlier. This marks a rise of 53.7% from the year earlier quarter.

Revenue: Rose 21.9% to $1.65 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ROK beat the mean analyst estimate of $1.22 per share. It beat the average revenue estimate of $1.55 billion.

Quoting Management: Keith D. Nosbusch, chairman and chief executive officer, said, “The fourth quarter capped a year of outstanding sales and earnings performance. Sales growth was strong in all regions. Control Products & Solutions had a great quarter with 18percent organic growth. Total segment operating margin expanded to 18percent and it was another record quarter for sales and earnings per share.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.3%, 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 third quarter, net income rose 50.3% and in the second quarter, the figure rose 21.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by 2 cents in the second quarter, and by 16 cents in the first quarter.

Gross margins grew 1.1 percentage points to 40.1%. The growth seemed to be driven by increased revenue, as the figure rose 21.9% from the year earlier quarter while costs rose 19.7%.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is $1.17 per share, down from $1.21 ninety days ago. The average estimate for the fiscal year is $4.61 per share, down from $4.63 ninety days ago.

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).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)