Rockwell Automation Inc.ROK is the world's largest company dedicated to industrial automation. Its products, services and solutions address a broad range of challenges in every major industrial sector, from automotive and tire to mining and oil and gas, from pharmaceuticals to food and beverage. Its brands include Allen-Bradley, Reliance Electric and Rockwell Software.
Rockwell's growth and performance strategy seeks to achieve growth rates in excess of the automation market by expanding its served market, diversifying sales streams by broadening portfolio of products, solutions and services, expanding its global presence, growing market share and making acquisitions. Heavy industry end markets including oil and gas have not yet stabilized, and Rockwell Automation foresees continued softness in key emerging markets. In the U.S., its largest market, a strong dollar is adversely affecting producers and OEMs. Moreover, weakness in the mining industry and lack of major projects also remain concerns.
Investors have thus been eagerly awaiting the company's fiscal 2017 first quarter earnings report. Let's have a quick look at the earnings release of this Milwaukee, WI-based provider industrial automation power, control, and information solutions.
Estimate Trend & Surprise History : The earnings estimate revisions for Rockwell Automation has gone up over the last 30 days. The Zacks Consensus Estimate for the first quarter of fiscal 2017 has gone up 1% and currently stands at $1.45. As regards earnings surprise, Rockwell Automation outpaced the Zacks Consensus Estimate in all of the past four quarters, with an average beat of 5.79%.
Rockwell Automation, Inc. Price and EPS Surprise
Earnings : Rockwell Automation beat estimates by a margin of 21%. Our consensus called for first quarter fiscal 2017 EPS of $1.45, while the company reported adjusted EPS of $1.75.
Revenue : Rockwell Automation also beat on the revenue front. It reported first quarter fiscal 2017 revenues of $1,490 million, ahead of the Zacks Consensus Estimate of $1,419 million.
Key Developments to Note : Given the strong first quarter results, Rockwell Automation increased its fiscal 2017 organic sales and earnings per share guidance ranges. For 2017, the company now expects adjusted EPS in the range of $5.95 to $6.35 per share. The company forecasts reported sales growth to be in the range of 1% to 5%.
Zacks Rank : Currently, Rockwell Automation has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction : Rockwell Automation's shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Rockwell Automation earnings report later!
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.