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Rockwell Automation (ROK) Q1 Earnings: What's in Store?
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Rockwell Automation, Inc. (ROK - Free Report) is scheduled to report first-quarter fiscal 2017 results on Jan 25, before the opening bell. In the last reported quarter, Rockwell Automation’s both top line and bottom line declined year over year. Let’s see how things are shaping up prior to the first quarter announcement.
Rockwell Automation's shares have outperformed the Zacks categorized Industrial Automation/Robotics sub industry. The company’s share price has surged 55.5% in the last one year, while the subindustry witnessed a gain of 52.4% in the same timeframe.
Earnings Whispers
Our proven model does not conclusively show that Rockwell Automation will be able to pull a surprise this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. That is not the case here as you will see below.
Zacks ESP: Rockwell Automation’s Earnings ESP stands at -2.76%. This is because the company’s Most Accurate estimate is $1.41, while the Zacks Consensus Estimate is pegged higher at $1.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rockwell Automation currently carries a Zacks Rank #3. Note that stocks with Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Rockwell Automation’s Zacks Rank #3 combined with a negative Earnings ESP makes an earnings beat unlikely this quarter.
Surprise History
The company has an impressive earnings surprise history given that it has beaten the Zacks Consensus Estimate in the past four quarters. In the last reported quarter, the company posted a positive earnings surprise of 2.01% and has delivered a positive earnings surprise of 5.79% on an average over the last four quarters.
In the last reported quarter, the company witnessed positive year-over-year organic growth in the Architecture & Software segment for the first time in fiscal 2016. Further, the product business delivered strong sequential growth in the last two quarters of fiscal 2016, which is expected to continue in first-quarter 2017 as well. There will be continued growth in automotive and consumer verticals. However, Rockwell Automation continues to witness significant weakness in heavy industries, particularly in the U.S.
Further, the global mining industry has been noticeably sluggish owing to oversupply and weak commodity prices. Continued weakness in the mining industry and lack of major projects will continue to affect the company’s results in the coming quarters. Moreover, unfavorable currency translation and project delays remain headwinds.
Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Ingersoll-Rand Plc (IR - Free Report) has an Earnings ESP of +1.09% and carries a Zacks Rank #3.
Johnson Controls International plc (JCI - Free Report) , a Zacks Rank #3 stock, has an Earnings ESP of +1.96%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research.See these stocks free >>
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Rockwell Automation (ROK) Q1 Earnings: What's in Store?
Rockwell Automation, Inc. (ROK - Free Report) is scheduled to report first-quarter fiscal 2017 results on Jan 25, before the opening bell. In the last reported quarter, Rockwell Automation’s both top line and bottom line declined year over year. Let’s see how things are shaping up prior to the first quarter announcement.
Rockwell Automation's shares have outperformed the Zacks categorized Industrial Automation/Robotics sub industry. The company’s share price has surged 55.5% in the last one year, while the subindustry witnessed a gain of 52.4% in the same timeframe.
Earnings Whispers
Our proven model does not conclusively show that Rockwell Automation will be able to pull a surprise this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. That is not the case here as you will see below.
Zacks ESP: Rockwell Automation’s Earnings ESP stands at -2.76%. This is because the company’s Most Accurate estimate is $1.41, while the Zacks Consensus Estimate is pegged higher at $1.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rockwell Automation currently carries a Zacks Rank #3. Note that stocks with Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Rockwell Automation’s Zacks Rank #3 combined with a negative Earnings ESP makes an earnings beat unlikely this quarter.
Surprise History
The company has an impressive earnings surprise history given that it has beaten the Zacks Consensus Estimate in the past four quarters. In the last reported quarter, the company posted a positive earnings surprise of 2.01% and has delivered a positive earnings surprise of 5.79% on an average over the last four quarters.
Rockwell Automation Inc. Price and EPS Surprise
Rockwell Automation Inc. Price and EPS Surprise | Rockwell Automation Inc. Quote
Factors at Play
In the last reported quarter, the company witnessed positive year-over-year organic growth in the Architecture & Software segment for the first time in fiscal 2016. Further, the product business delivered strong sequential growth in the last two quarters of fiscal 2016, which is expected to continue in first-quarter 2017 as well. There will be continued growth in automotive and consumer verticals. However, Rockwell Automation continues to witness significant weakness in heavy industries, particularly in the U.S.
Further, the global mining industry has been noticeably sluggish owing to oversupply and weak commodity prices. Continued weakness in the mining industry and lack of major projects will continue to affect the company’s results in the coming quarters. Moreover, unfavorable currency translation and project delays remain headwinds.
Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Deere & Company (DE - Free Report) has an Earnings ESP of +9.80% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingersoll-Rand Plc (IR - Free Report) has an Earnings ESP of +1.09% and carries a Zacks Rank #3.
Johnson Controls International plc (JCI - Free Report) , a Zacks Rank #3 stock, has an Earnings ESP of +1.96%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>