The 10-second takeaway
For the quarter ended June 30 (Q3), Rockwell Automation missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew.
Margins grew across the board.
Rockwell Automation reported revenue of $1.56 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $1.60 billion on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $1.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.33. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.32 per share. GAAP EPS of $1.34 for Q3 were 9.8% higher than the prior-year quarter's $1.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 50 basis points better than the prior-year quarter. Operating margin was 16.8%, 120 basis points better than the prior-year quarter. Net margin was 12.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.70 billion. On the bottom line, the average EPS estimate is $1.44.
Next year's average estimate for revenue is $6.33 billion. The average EPS estimate is $5.20.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwell Automation is outperform, with an average price target of $87.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.