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Rockwell Automation Shares Gain Post Q3 Results; Reports Continued Order Strength

Benzinga · 07/27/2022 12:18
  • Rockwell Automation (NYSE:ROK) reported third-quarter sales growth of 6.5% year-over-year to $1.97 billion, +7.1% organic basis, missing the consensus of $2 billion. Total orders were up 17% Y/Y.
  • Adjusted EPS improved to $2.66 from $2.31 in 3Q21, above the consensus of $2.39.
  • Sales by Segments: Intelligent Devices $878.3 million (-0.5% Y/Y); Software & Control $606.9 million (+19.1% Y/Y) and Lifecycle Services $483.5 million (+6.1% Y/Y).
  • The gross margin was 40.8%, down by 60 bps from a year ago.
  • Total segment operating earnings were $409 million (+11% Y/Y), and the segment operating margin was 20.8% compared to 19.9% a year ago.
  • The pre-tax margin was 17.5% compared to 17% in the same period last year.
  • Total ARR grew 59% Y/Y, and organic ARR grew 18% Y/Y.
  • Return on invested capital was 12.8% compared to 40.4% in 3Q21.
  • ROK repurchased ~0.8 million shares for $176 million during the quarter. At June 30, 2022, $1.3 billion remained under the existing authorization.
  • Rockwell’s cash provided by operating activities year-to-date totaled $423.7 million, compared to $1.06 billion a year ago.
  • FY22 Guidance: ROK sees sales growth of 10.5% - 12.5% with organic growth of 10% - 12% versus prior expectation of 11% - 15% and 10% - 14%, respectively.
  • It sees EPS of $7.74 - $8.14 (prior $7.60 - $8.20) and Adjusted EPS of $9.30 - $9.70 (prior $9.20 - $9.80), vs. a consensus of $9.28.
  • Price Action: ROK shares are trading higher by 7.73% at $236.39 on the last check Wednesday.