The board of on
Rockwell Automation, Inc.
) has sanctioned the repurchase of additional common stock of up to
$1 billion on top of its prior repurchase authorization of $1
billion, initiated in June, 2012.
Under the previous $1 billion share buyback program, Rockwell
Automation has repurchased around $777 million worth of shares. As
of June 3, 2014, there were around 223 million shares outstanding.
In addition to its share buyback program, the company also
announced a quarterly dividend of 58 cents a share. The dividend
will be paid on Sep 10, 2014, to shareholders of record as of Aug
11, 2014. These programs are in sync with Rockwell Automation's
commitment to create long-term value for investors.
Notably, Rockwell Automation facilitates returns to shareholders
through dividends and buybacks. In the past four years, the company
has returned over 80% of free cash flow or $2 billion to
Rockwell Automation reported second-quarter fiscal 2014 (ended Mar
31, 2014) adjusted earnings of $1.35 per share, up 2% from the
year-ago quarter. Total revenue also increased to $1,601 million in
the quarter, up 5% year over year.
Rockwell Automation's cash flow from operations increased to $406
million during second-quarter 2014, as against $370 million in the
year-ago comparable period. Strong balance sheet position and free
cash flow, along with dividends and share repurchases are expected
to generate long-term shareholder value.
Rockwell Automation reiterated its organic revenue growth rate to
be in the range of 3.5-6.5% and segment margin to be about 20% for
fiscal 2014. The company expects adjusted earnings per share to
land in the range of $6.00 to $6.35 for the full year.
Moreover, Rockwell Automation will benefit from expansion in the
emerging markets and through strategic acquisitions. However,
uncertainty in the global economic scenario remains headwind.
Milwaukee, WI-based Rockwell Automation is a leading global
provider of industrial automation equipment, application-specific
integrated software and consulting design services. It also offers
industrial automation power, control and information solutions.
Currently, Rockwell Automation carries a Zacks Rank #3 (Hold). Some
better-ranked stocks worth considering include
Blount International Inc.
). All of these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ROCKWELL AUTOMT (ROK): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
IROBOT CORP (IRBT): Free Stock Analysis Report
BLOUNT INTL (BLT): Free Stock Analysis Report
To read this article on Zacks.com click here.