The 10-second takeaway
For the quarter ended June 30 (Q3), Rockwell Automation beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins grew.
Rockwell Automation logged revenue of $1.62 billion. The 16 analysts polled by S&P Capital IQ wanted to see sales of $1.60 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 came in at $1.54. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.39 per share. Non-GAAP EPS of $1.54 for Q3 were 16% higher than the prior-year quarter's $1.33 per share. GAAP EPS of $1.46 for Q3 were 9.8% higher than the prior-year quarter's $1.33 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 40.2%, 30 basis points worse than the prior-year quarter. Operating margin was 16.6%, 20 basis points worse than the prior-year quarter. Net margin was 12.5%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.73 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $6.40 billion. The average EPS estimate is $5.50.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwell Automation is hold, with an average price target of $92.88.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.
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