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Rockwell Automation (ROK) Q4 Earnings Beat Estimates, Up Y/Y
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Rockwell Automation Inc. (ROK - Free Report) reported an adjusted earnings of $2.33 in fourth-quarter fiscal 2021 (ended Sep 30, 2021), beating the Zacks Consensus Estimate of $2.18. The bottom line improved 21% year over year, driven by higher sales and a lower tax rate.
Including one-time items, the company’s earnings was 67 cents per share compared with the year-ago quarter’s $2.25.
Total revenues were $1,808 million, up 15% from the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,884 million. Organic sales in the quarter were up 12.6%, while currency translation had a positive impact of 1.5%. The company reported record quarterly orders of $2.2 billion, which surged 40% year over year.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Cost of sales increased 17% year over year to around $1,088 million. Gross profit climbed 12% year over year to $719 million. Selling, general and administrative expenses flared up 26% year over year to $447 million.
Consolidated segment operating income totaled $323 million, up 1.7% from the prior-year quarter. Total segment operating margin was 17.9% in the fiscal fourth quarter, lower than the prior-year period’s 20.2%. Gain from enhanced sales was negated by higher planned spending, the reinstatement of incentive compensation, and the reversal of temporary pay actions.
Segment Results
Intelligent Devices: Net sales amounted to $857 million during the fiscal fourth quarter, reflecting year-over-year growth of 17%. Segment operating earnings totaled $166 million compared with the year-earlier quarter’s $135 million. Segment operating margin expanded to 19.4% in the quarter compared with the year-ago quarter’s 18.4%.
Software & Control: Net sales climbed 19% year over year to $494 million in the reported quarter. Segment operating earnings increased 5% year over year to $120 million. Segment operating margin was 24.2% compared with 27.5% recorded in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $457 million in the reported quarter, reflecting year-over-year growth of 9%. Segment operating earnings totaled $37 million, indicating a plunge of 46% from the prior-year quarter. Segment operating margin was 8.1% in the reported quarter compared with the year-earlier quarter’s 16.3%.
Financials
As of the end of fiscal 2021, cash and cash equivalents were around $662 million compared with $705 million as of the end of fiscal 2020. As of Sep 30, 2021, total debt was around $3.97 billion compared with $2 billion as of Sep 30, 2020.
Cash flow from operations during the fiscal 2021 was $1.26 billion compared with the prior-year’s $1.12 billion. Return on invested capital was 30.7% as of Sep 30, 2021.
During fiscal 2021, Rockwell Automation repurchased 1.1 million shares for $301.4 million. As of the end of fiscal 2021, $552.3 million was available under the existing share-repurchase authorization.
Fiscal 2021 Performance
For fiscal 2021, Rockwell Automation’s adjusted earnings was $9.43, which surpassed the Zacks Consensus Estimate of $9.28. It was 20% higher than the prior fiscal. Including one-time items, the company’s earnings were $11.58 per share compared with $8.77 in fiscal 2020.
Total revenues advanced 10.5% year over year to around $6,997 million, which missed the Zacks Consensus Estimate of $7,077 million.
Fiscal 2022 Guidance
Reflecting strong demand and record backlog, Rockwell Automation expects reported sales growth at 16-19% for fiscal 2022. Organic sales growth is projected at 14-17%. Adjusted earnings per share guidance for fiscal 2022 is expected to be $10.50-$11.10.
Share Price Performance
Image Source: Zacks Investment Research
Over the past year, Rockwell Automation’s shares have appreciated 30.4% compared with the industry’s rally of 29.3%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include The Manitowoc Company, Inc. (MTW - Free Report) , Encore Wire Corporation and Heritage-Crystal Clean, Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manitowoc has an anticipated earnings growth rate of 340% for fiscal 2021. The company’s shares have soared around 186% in a year.
Encore Wire has an estimated earnings growth rate of 491% for the ongoing fiscal year. The company’s shares have appreciated 197% in the past year.
Heritage-Crystal Clean has a projected earnings growth rate of 553% for the current year. The stock has appreciated around 108% in a year’s time.
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Rockwell Automation (ROK) Q4 Earnings Beat Estimates, Up Y/Y
Rockwell Automation Inc. (ROK - Free Report) reported an adjusted earnings of $2.33 in fourth-quarter fiscal 2021 (ended Sep 30, 2021), beating the Zacks Consensus Estimate of $2.18. The bottom line improved 21% year over year, driven by higher sales and a lower tax rate.
Including one-time items, the company’s earnings was 67 cents per share compared with the year-ago quarter’s $2.25.
Total revenues were $1,808 million, up 15% from the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,884 million. Organic sales in the quarter were up 12.6%, while currency translation had a positive impact of 1.5%. The company reported record quarterly orders of $2.2 billion, which surged 40% year over year.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
Operational Update
Cost of sales increased 17% year over year to around $1,088 million. Gross profit climbed 12% year over year to $719 million. Selling, general and administrative expenses flared up 26% year over year to $447 million.
Consolidated segment operating income totaled $323 million, up 1.7% from the prior-year quarter. Total segment operating margin was 17.9% in the fiscal fourth quarter, lower than the prior-year period’s 20.2%. Gain from enhanced sales was negated by higher planned spending, the reinstatement of incentive compensation, and the reversal of temporary pay actions.
Segment Results
Intelligent Devices: Net sales amounted to $857 million during the fiscal fourth quarter, reflecting year-over-year growth of 17%. Segment operating earnings totaled $166 million compared with the year-earlier quarter’s $135 million. Segment operating margin expanded to 19.4% in the quarter compared with the year-ago quarter’s 18.4%.
Software & Control: Net sales climbed 19% year over year to $494 million in the reported quarter. Segment operating earnings increased 5% year over year to $120 million. Segment operating margin was 24.2% compared with 27.5% recorded in the year-earlier quarter.
Lifecycle Services: Net sales for the segment were $457 million in the reported quarter, reflecting year-over-year growth of 9%. Segment operating earnings totaled $37 million, indicating a plunge of 46% from the prior-year quarter. Segment operating margin was 8.1% in the reported quarter compared with the year-earlier quarter’s 16.3%.
Financials
As of the end of fiscal 2021, cash and cash equivalents were around $662 million compared with $705 million as of the end of fiscal 2020. As of Sep 30, 2021, total debt was around $3.97 billion compared with $2 billion as of Sep 30, 2020.
Cash flow from operations during the fiscal 2021 was $1.26 billion compared with the prior-year’s $1.12 billion. Return on invested capital was 30.7% as of Sep 30, 2021.
During fiscal 2021, Rockwell Automation repurchased 1.1 million shares for $301.4 million. As of the end of fiscal 2021, $552.3 million was available under the existing share-repurchase authorization.
Fiscal 2021 Performance
For fiscal 2021, Rockwell Automation’s adjusted earnings was $9.43, which surpassed the Zacks Consensus Estimate of $9.28. It was 20% higher than the prior fiscal. Including one-time items, the company’s earnings were $11.58 per share compared with $8.77 in fiscal 2020.
Total revenues advanced 10.5% year over year to around $6,997 million, which missed the Zacks Consensus Estimate of $7,077 million.
Fiscal 2022 Guidance
Reflecting strong demand and record backlog, Rockwell Automation expects reported sales growth at 16-19% for fiscal 2022. Organic sales growth is projected at 14-17%. Adjusted earnings per share guidance for fiscal 2022 is expected to be $10.50-$11.10.
Share Price Performance
Over the past year, Rockwell Automation’s shares have appreciated 30.4% compared with the industry’s rally of 29.3%.
Zacks Rank & Stocks to Consider
Rockwell Automation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include The Manitowoc Company, Inc. (MTW - Free Report) , Encore Wire Corporation and Heritage-Crystal Clean, Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manitowoc has an anticipated earnings growth rate of 340% for fiscal 2021. The company’s shares have soared around 186% in a year.
Encore Wire has an estimated earnings growth rate of 491% for the ongoing fiscal year. The company’s shares have appreciated 197% in the past year.
Heritage-Crystal Clean has a projected earnings growth rate of 553% for the current year. The stock has appreciated around 108% in a year’s time.