Rockwell Automation Inc. ROK has reported adjusted earnings per share (EPS) of $2.47 in fourth-quarter fiscal 2024 (ended Sept. 30, 2024), beating the Zacks Consensus Estimate of $2.40. The bottom line fell 32% year over year on a lower sales volume.
Including one-time items, earnings were $2.09 per share in the fiscal fourth quarter compared with the prior-year quarter’s $2.61.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
ROK’s total revenues were $2.04 billion, down 20.6% from the prior-year quarter. The top line missed the Zacks Consensus Estimate of $2.07 billion. Organic sales in the quarter were down 21% year over year. We expected organic sales to decline 21.7% in the quarter. Acquisitions contributed 1% to sales, while currency had negative impacts.
ROK’s Q4 Operational Update
The cost of sales decreased 16.1% year over year to $1.26 billion. The gross profit fell 27% year over year to $771 million. Selling, general and administrative expenses moved down 11.7% year over year to $487 million.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
Consolidated segment operating income totaled $409 million, down 28.5% from the prior-year quarter. The total segment operating margin was 20.1% in the fiscal fourth quarter, lower than the prior-year period’s 22.3%. The decline was due to lower sales volume and an unfavorable mix, partially negated by gains from cost-reduction actions.
Rockwell Automation’s Q4 Segmental Results
Intelligent Devices: Net sales amounted to $946 million in the fiscal fourth quarter, down 19.2% year over year. The reported figure missed our estimate of $960 million.
The segment’s operating earnings totaled $195 million compared with the year-earlier quarter’s $249 million. We predicted the segment operating earnings of $185 million for the quarter. The segment’s operating margin decreased to 20.6% in the quarter from the year-ago quarter’s 21.3%.
Software & Control: Net sales fell 38.9% year over year to $502 million in the reported quarter. Reported sales missed our estimate of $512 million.
The segment’s operating earnings plunged 59.3% year over year to $112 million. We predicted segmental operating earnings of $121 million. The segment’s operating margin was 22.3% compared with 33.5% in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $588 million in the reported quarter, up 3% year over year. We projected the segment’s sales to be $584 million for the quarter. The segment’s operating earnings totaled $102 million compared with the prior-year quarter’s $47.8 million.
Our estimate for the segment’s operating earnings was $102.5 million. The segment’s operating margin was 17.4% in the reported quarter compared with the year-earlier quarter’s 8.4%.
ROK’s FY24 Performance
The company has reported an adjusted EPS of $9.71 in fiscal 2024, beating the Zacks Consensus Estimate of $9.65. The bottom line was down 20% year over year. Including one-time items, earnings were $8.28 per share in the year compared with the prior year’s $11.95.
In fiscal 2024, total revenues were $8.26 billion, down 8.8% from fiscal 2023. The top line missed the Zacks Consensus Estimate of $8.29 billion. Organic sales for the year were down 10%. Acquisitions contributed 1% to sales, while currency negatively impacted the same.
Rockwell Automation’s Cash Position & Balance Sheet Updates
At the end of fiscal 2024, cash and cash equivalents were $0.47 billion compared with $1.07 billion as of the end of fiscal 2023. The long-term debt was $2.56 billion at the end of fiscal 2024, down from $2.86 million at the fiscal 2023 end.
Cash flow from operations in the year ended Sept. 30, 2024, was $0.86 billion compared with the prior year’s $1.37 billion. Return on invested capital was 15.2% as of Sept. 30, 2024.
In fiscal 2024, ROK repurchased 2.2 million shares for $594 million. As of the end of the quarter, $1.3 billion was available under the existing share-repurchase authorization.
ROK’s FY25 Guidance
Rockwell Automation expects an adjusted EPS of $8.60-$9.80 for fiscal 2025. The mid-point indicates a year-over-year dip of 5%.
Rockwell Automation’s Price Performance
In the past year, ROK shares have gained 16.5% against the industry’s 7% decline.
Image Source: Zacks Investment Research
ROK’s Zacks Rank
Rockwell Automation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rockwell Automation’s Peer Performances
KLA Corporation KLAC reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of $7.33 per share, beating the Zacks Consensus Estimate of $7.03. The figure jumped 27.7% year over year.
KLAC’s revenues increased 18.5% year over year to $2.84 billion, surpassing the Zacks Consensus Estimate of $2.76 billion.
Garmin Ltd.’s GRMN third-quarter 2024 EPS was $1.99, which beat the Zacks Consensus Estimate of $1.46. The bottom line marked a 41% year-over-year improvement.
GRMN posted revenues of $1.59 billion for the quarter, which beat the consensus estimate of $1.44 billion. The company reported revenues of $1.28 billion in the year-ago quarter.
Carrier Global Corporation CARR posted third-quarter 2024 EPS of 77 cents per share, missing the Zacks Consensus Estimate of 81 cents. The company had reported earnings of 89 cents in the year-ago quarter.
CARR recorded third-quarter 2024 revenues of $5.98 billion for the quarter, which missed the consensus estimate of $6.61 billion. The company had reported revenues of $5.73 billion in the year-ago quarter.
Free Today: Profiting from The Future’s Brightest Energy Source
The demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.
Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.
Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.Garmin Ltd. (GRMN) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
