U.S. Markets open in 1 hr 53 mins
  • S&P Futures

    4,059.50
    -86.75 (-2.09%)
     
  • Dow Futures

    33,521.00
    -662.00 (-1.94%)
     
  • Nasdaq Futures

    13,000.50
    -345.50 (-2.59%)
     
  • Russell 2000 Futures

    2,134.20
    -69.10 (-3.14%)
     
  • Crude Oil

    63.78
    -2.30 (-3.48%)
     
  • Gold

    1,819.90
    -16.20 (-0.88%)
     
  • Silver

    27.10
    -0.56 (-2.03%)
     
  • EUR/USD

    1.2080
    -0.0072 (-0.5919%)
     
  • 10-Yr Bond

    1.6950
    +0.0710 (+4.37%)
     
  • Vix

    28.25
    +6.41 (+29.35%)
     
  • GBP/USD

    1.4057
    -0.0087 (-0.6171%)
     
  • USD/JPY

    109.6200
    +1.0000 (+0.9206%)
     
  • BTC-USD

    50,532.92
    +809.85 (+1.63%)
     
  • CMC Crypto 200

    1,468.19
    -95.64 (-6.12%)
     
  • FTSE 100

    7,004.63
    +56.64 (+0.82%)
     
  • Nikkei 225

    28,147.51
    -461.08 (-1.61%)
     

Rockwell Slips On 4Q Sales Miss; Analyst Stays Bullish

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
support@smarteranalyst.com (Ben Mahaney)
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Shares of Rockwell Automation closed 2.3% lower on Tuesday after the industrial automation and information technology provider reported weaker-than-expected 4Q sales. Sales dropped 9.3% year-on-year to $1.57 billion and fell short of analysts’ expectations of $1.59 billion.

Rockwell’s (ROK) adjusted EPS declined 7% to $1.87 year-over-year but surpassed Street estimates of $1.76. The company’s CEO Blake Moret said, “Flat operating margin in the quarter and strong free cash flow, despite lower year-over-year sales, are a testament to our ability to manage costs while continuing to make strategic investments.”

For fiscal 2021, Rockwell projects 6% to 9% growth in revenues. The company foreacasts adjusted earnings to be in the range of $8.45-$8.85 per share. (See ROK stock analysis on TipRanks).

Following the earnings release, Oppenheimer analyst Noah Kaye maintained a Buy rating and the price target of $263 (5.6% upside potential). In a note to investors, Kaye wrote, “FY21 outlook contemplates a strong back-half recovery led by discrete and hybrid end-markets and improving quality of earnings with recurring revenues up double digits. Guided FY21 incremental segment margins of 25%, reflecting incentive comp/temporary action headwinds, appear to set up potential outperformance.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 5 Buys, 5 Holds and 1 Sell. The average price target of $245.75 implies downside potential of about 1.3% to current levels. Shares are up about 23% year-to-date.

Related News:
Sprout Social’s 2020 Outlook Surprises; Stock Up 173% YTD
Cars.com Surpasses 3Q Estimates On Improved Online Traffic
BTIG Flips To Buy On Square; Stock Up 194% YTD

More recent articles from Smarter Analyst: