Advertisement
U.S. markets close in 5 hours 30 minutes
  • S&P 500

    5,063.52
    +81.72 (+1.64%)
     
  • Dow 30

    38,896.04
    +283.80 (+0.74%)
     
  • Nasdaq

    15,960.15
    +379.28 (+2.43%)
     
  • Russell 2000

    2,004.84
    +10.10 (+0.51%)
     
  • Crude Oil

    78.04
    +0.13 (+0.17%)
     
  • Gold

    2,031.40
    -2.90 (-0.14%)
     
  • Silver

    22.81
    -0.07 (-0.30%)
     
  • EUR/USD

    1.0815
    -0.0007 (-0.06%)
     
  • 10-Yr Bond

    4.3170
    -0.0080 (-0.19%)
     
  • GBP/USD

    1.2622
    -0.0016 (-0.13%)
     
  • USD/JPY

    150.5480
    +0.2400 (+0.16%)
     
  • Bitcoin USD

    51,334.55
    +104.78 (+0.20%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,676.60
    +14.09 (+0.18%)
     
  • Nikkei 225

    39,098.68
    +836.52 (+2.19%)
     

What's in Store for Rockwell Automation (ROK) in Q4 Earnings?

Rockwell Automation Inc. ROK is scheduled to report fourth-quarter fiscal 2023 results on Nov 2, before the opening bell.

Q3 Performance

In the last reported quarter, the company’s earnings and revenues improved year over year. The top and bottom lines, however, missed the Zacks Consensus Estimate.

The company’s earnings surpassed estimates in the last trailing four quarters, the average surprise being 12.1%.

Rockwell Automation, Inc. Price and EPS Surprise

 

Rockwell Automation, Inc. price-eps-surprise | Rockwell Automation, Inc. Quote

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $2.4 billion, indicating an improvement of 14.7% from the prior-year quarter’s actual. The same for earnings is pinned at $3.49 per share, implying a 14.8% increase from the year-ago quarter’s reported figure.

Factors to Note

In the past few quarters, Rockwell Automation has witnessed an improvement in order levels. Low order cancellation rates indicate solid underlying demand from customers across many industries and regions.

Ongoing capital investments in several end markets, coupled with higher automation and digital transformation, are expected to have supported solid order levels across all segments in the quarter under review. Our model predicts an organic sales growth of 9.5% for the quarter.

ROK’s performance has been impacted by ongoing material shortages and production delays in the earlier quarters. However, supply-chain issues have shown signs of easing lately. This is expected to have aided the company’s fiscal fourth-quarter performance.

Higher logistics costs due to elevated energy expenses and constrained air freight lanes are likely to have impacted margins. We expect selling, general and administrative expenses to increase 14.2% year over year in the quarter.

Higher spending on product development is however expected to have weighed on ROK’s margin performance. Nonetheless, the company’s price increase actions are likely to have mitigated the impacts of inflationary pressures and contributed to margin expansion.

Segmental Expectations

We expect the Intelligent Devices segment’s fourth-quarter fiscal 2023 revenues to be up 15.4% year over year to $1,105 million. Our prediction for the segment’s operating profit is pinned at $228 million, indicating a year-over-year increase of 6.9%.

Our model predicts the Software & Control segment’s sales at $744 million, suggesting an increase of 13.3% from the prior year’s actual. The same for the segment’s operating profit is pinned at $271 million, indicating an increase of 19.5% from the year-ago quarter’s reported figure.

We expect the Lifecycle Services segment’s sales to be $556 million, indicating growth of 8.5% from the prior-year period’s actual. The same for the segment’s operating profit is pinned at $60 million, indicating a fall of 10.2% from the year-ago quarter’s reported figure.

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Rockwell Automation this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: Rockwell Automation has an Earnings ESP of -0.46%.

Zacks Rank: The company currently carries a Zacks Rank #3

Price Performance

In the past year, Rockwell Automation’s shares have gained 7.5% compared with the industry’s growth of 6.1%.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Stocks to Consider

Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Kubota Corporation KUBTY, expected to release results on Nov 8, has an Earnings ESP of +4.20% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KUBTY’s earnings for the third quarter is pegged at $1.19 per share. The consensus estimate for earnings has moved 2% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 12.7%.

ESAB Corporation ESAB, scheduled to release earnings on Nov 1, has an Earnings ESP of +1.06% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for ESAB’s third-quarter earnings is pegged at 92 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 13.6%.

Ingersoll Rand Inc. IR, expected to release earnings on Nov 1, has an Earnings ESP of +0.36% and a Zacks Rank of 3.

The consensus estimate for IR’s third-quarter earnings is pegged at 70 cents per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report

Ingersoll Rand Inc. (IR) : Free Stock Analysis Report

Kubota Corp. (KUBTY) : Free Stock Analysis Report

ESAB Corporation (ESAB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement