Please ensure Javascript is enabled for purposes of website accessibility

Rockwell Automation Misses on Revenues but Beats on EPS

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Rockwell Automation (NYSE: ROK) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Rockwell Automation missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share grew. GAAP earnings per share increased.

Gross margins expanded, operating margins were steady, net margins increased.

Revenue details
Rockwell Automation reported revenue of $1.52 billion. The 14 analysts polled by S&P Capital IQ expected to see sales of $1.59 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.33. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.29 per share. Non-GAAP EPS of $1.33 for Q2 were 15% higher than the prior-year quarter's $1.16 per share. GAAP EPS of $1.24 for Q2 were 6.9% higher than the prior-year quarter's $1.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.5%, 90 basis points better than the prior-year quarter. Operating margin was 15.7%, much about the same as the prior-year quarter. Net margin was 11.6%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is $1.43.

Next year's average estimate for revenue is $6.54 billion. The average EPS estimate is $5.53.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwell Automation is hold, with an average price target of $92.31.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Rockwell Automation. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Rockwell Automation Inc. Stock Quote
Rockwell Automation Inc.
ROK
$211.02 (3.07%) $6.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.