Rockwell Automation, Inc. Earnings: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Rockwell Automation, Inc. (NYSE:ROK) reported its results for the third quarter. 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 Third Quarter

Results: Net income for the industrial electrical equipment company rose to $179.5 million ($1.23 per share) vs. $119.4 million (83 cents per share) in the same quarter a year earlier. This marks a rise of 50.3% from the year earlier quarter.

Revenue: Rose 19.6% to $1.52 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ROK beat the mean analyst estimate of $1.19 per share. It beat the average revenue estimate of $1.48 billion.

Quoting Management: Commenting on the results, Keith D. Nosbusch, chairman and chief executive officer, said, “I am very pleased with the record results for the company in the third quarter. We have capitalized on the ongoing economic recovery by effectively executing our strategy. Architecture & Software had a great quarter with Logix growth of over 25 percent and its highest segment margin since the third quarter of fiscal 2007. Total company operating margin continued to improve, reaching 17.4 percent in the quarter. We closed two acquisitions in the quarter, announced a 21 percent dividend increase, and stepped up our share repurchases. We are on track for an excellent year for the company and for our shareowners.”

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 25%, 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 second quarter, net income rose 21.5% and in the first quarter, the figure rose 96%.

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

The company’s cost of sales rose 19.5% from a year earlier. Last quarter, cost of sales was 60% of revenue, similar to a year earlier.

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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(Source: Xignite Financials)