Financial Data and Key Metrics - Q4 sales declined 21% YoY compared to 18% growth in Q4 of the previous year, primarily due to difficult YoY comparisons, channel destocking effects, and slower end-user demand [15] - Organic sales in the Intelligent Devices segment declined 20% YoY, with products down but configured-to-order offerings and acquisitions growing YoY [16] - Software & Control organic sales were down over 30% YoY, with logic shipments weaker due to slower end demand in product-centric markets [18] - Lifecycle Services organic sales grew about 2% YoY, with a book-to-bill ratio of 0.9, slightly below the historical average for Q4 [21] - Adjusted EPS for Q4 was $2.47, above expectations due to price and one-time items, including a $22 million benefit from an earn-out adjustment [40] - Free cash flow for Q4 was $367 million, $409 million lower than the prior year, primarily due to lower pretax income [41] Business Line Performance - Intelligent Devices segment margin was 20.6%, down 70 basis points YoY, driven by lower sales volume and unfavorable mix [42] - Software & Control segment margin was 22.3%, down about 1,100 basis points YoY, mainly due to lower shipments of Logix controllers [43] - Lifecycle Services segment margin was 17.4%, up 890 basis points YoY, driven by strong project execution and Sensia margin improvement [45] - Annual recurring revenue (ARR) grew 16% in the quarter, now representing over 10% of total revenue, with double-digit growth across software and services offerings [22] Market Performance - North America was the best-performing region, with sequential order growth in Q4, while Asia contributed the largest sequential decline [14] - Sales in discrete industries were impacted by declines in automotive and semiconductor markets, partially offset by growth in e-commerce and warehouse automation [23] - Automotive sector saw EV project delays, but the company continued to win business in traditional ICE and hybrid programs [24] - e-Commerce & Warehouse Automation sales increased 25% YoY, driven by continued investments in warehouse upgrades and data center investments [27] - Process industries saw sales growth impacted by difficult comps, with over 25% growth in Q4 of the previous year [31] Company Strategy and Industry Competition - The company is focusing on cost savings, with $110 million of cost reductions realized in the second half of fiscal 2024, $10 million above the initial target [10] - Rockwell is expanding its market share in the U.S., with modest gains over the past few years, and is broadening its cost-saving activities under the new CFO [9][10] - The company is investing in new product introductions, including both hardware and software, with a strong focus on innovation and customer support [64] - Rockwell is leveraging its acquisitions, such as ClearPath and Verve, to expand its customer value in production, logistics, and cybersecurity spaces [36] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the U.S. manufacturing sector and the potential for policies that spur innovation and streamline project approvals [6] - The company expects Q1 orders to be flat sequentially, with sales down high single digits due to seasonality and slower orders in Q4 of fiscal 2024 [14] - For fiscal 2025, the company projects sales growth in the range of positive 2% to negative 4%, with gradual sequential improvement expected throughout the year [38] - Management anticipates $250 million in cost savings in fiscal 2025 from productivity and margin expansion projects [54] Other Important Information - The company repurchased approximately 450,000 shares in Q4 at a cost of $118 million, with $1.3 billion remaining under its repurchase authorizations [41] - Rockwell expects free cash flow conversion to return to 100% in fiscal 2025, with adjusted EPS guidance ranging from $8.60 to $9.80, with $9.20 at the midpoint [56] - The company plans to deploy $300 million in share repurchases during fiscal 2025 and expects corporate and other expenses to be around $130 million [63] Q&A Session Summary Question: Impact of U.S. Election and Potential Restocking - Management does not expect a rapid acceleration in restocking, with some distributors and machine builders already back to equilibrium [67] - The company did not see significant customer behavior changes during previous tariff implementations and is confident in its ability to adjust pricing if new tariffs are introduced [69] Question: Outlook for Discrete, Hybrid, and Process Markets in 2025 - Management expects a gradual recovery in discrete markets, with continued activity in hybrid and process markets, particularly in Life Sciences and e-commerce [72][73] - The company anticipates a sequential ramp in orders throughout fiscal 2025, with Lifecycle Services contributing positive growth due to its exposure to process markets [75] Question: Order Conversion Timeline and European Machine Builders - Orders for products are typically converted to shipments within weeks, while configure-to-order products and Lifecycle Services projects may take months [80] - European machine builders are expected to perform decently in fiscal 2025, with the Americas remaining the best-performing region [83] Question: Q1 2025 Guidance and Margin Expectations - Q1 margins are expected to be in the low to mid-teens, with gradual improvement throughout the year to reach the full-year segment margin target of just under 19% [57][105] Question: Intelligent Devices Segment and Channel Destocking - The step-down in Intelligent Devices revenue in Q1 is attributed to seasonal lows and the shipment of backlog in 2024, with end-user demand being the primary driver moving forward [108][111] Question: Non-R&D Investments and Facility Expansions - The company is making structural investments, including expanding CUBIC's footprint, a new facility in India, and IT infrastructure improvements, with a mix of OpEx and CapEx [116]

For the quarter ended September 2024, Rockwell Automation (ROK) reported revenue of $2.04 billion, down 20.6% over the same period last year. EPS came in at $2.47, compared to $3.64 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.07 billion, representing a surprise of -1.46%. The company delivered an EPS surprise of +2.92%, with the consensus EPS estimate being $2.40.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Rockwell Automation (ROK) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.40 per share. This compares to earnings of $3.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.92%. A quarter ago, it was expected that this industrial equipment and software maker would post earnings of $2.11 per share when it actually produced earnings of $2.71, delivering a surprise of 28.44%.Over th ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Rockwell Automation due to lower revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Rockwell Automation is expected to report quarterly earnings of $2.40 per share, reflecting a year-over-year decrease of 34.1% [3]. - Revenues are projected to be $2.07 billion, down 19.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.23% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.13% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8]. - Rockwell Automation currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [10]. Historical Performance - In the last reported quarter, Rockwell Automation exceeded expectations with earnings of $2.71 per share, a surprise of +28.44% compared to the expected $2.11 [11]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [12]. Conclusion - Rockwell Automation does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [15].

Honeywell logo is seen during defense industry exhibition in Kielce, Poland on September 3, 2024. ... [+] (Photo by Jakub Porzycki/NurPhoto via Getty Images) NurPhoto via Getty Images Given its better valuation and prospects, we believe Honeywell stock (NYSE: HON) is a better pick than its sector peer, Rockwell Automation stock (NYSE: ROK), an industrial automation and digital transformation solutions provider, for the next three years. HON stock trades at 3.4x revenues, similar to 3.3x for ROK. While Rockw ...

Core Insights - The introduction of Logix SIS from Rockwell Automation offers a modern and integrated safety solution with SIL 2 and SIL 3 certifications for enhanced process and hybrid safety [1][2] - Logix SIS includes all components of a safety instrumented system, engineered for high availability using proven Rockwell Automation hardware [1][2] Key Features - Logix SIS provides exceptional flexibility for process and hybrid safety applications while utilizing proven hardware to achieve the highest safety levels [2] - The system ensures high availability safety, delivering continuous operation for critical processes [2] - Implementation is streamlined by leveraging familiar hardware and software, reducing engineering time and maximizing efficiency through simplified design and configuration [2] - The system can be upgraded without requiring planned downtime, enhancing operational efficiency [2] Availability - Logix SIS will be available for order in September 2024, with an exclusive demonstration at Automation Fair® 2024 in Anaheim, California [3] Company Overview - Rockwell Automation, Inc. is a global leader in industrial automation and digital transformation, employing approximately 29,000 problem solvers in over 100 countries [4]

Rockwell Automation Inc. (ROK) announced that its board of directors authorized an additional $1 billion in repurchases of its common stock. This move reinforces the company's dedication to delivering value to its shareholders. Rockwell Automation's Focus on Capital Allocation Bodes Well On May 2, 2022, the company authorized the repurchase of $1 billion in common shares. As of Sept. 5, 2024, there was roughly $353 million remaining. Over the last five years, Rockwell Automation returned $4.7 billion to sha ...

It has been about a month since the last earnings report for Rockwell Automation (ROK) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Rockwell Automation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Rockwell Automation Q3 Earning ...

Have you evaluated the performance of Rockwell Automation's (ROK) international operations for the quarter ending June 2024? Given the extensive global presence of this industrial equipment and software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth. The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path ...

Rockwell Automation Inc. (ROK) reported adjusted earnings per share (EPS) of $2.71 in third-quarter fiscal 2024 (ended Jun 30, 2024), which surpassed the Zacks Consensus Estimate of $2.11. The bottom line declined 10% year over year, primarily attributed to lower sales volume in the Intelligent Devices, and Software & Control segments, which was offset by the improved performance of the Lifecycle Services segment. Including one-time items, earnings were $2.71 per share compared with $3.01 in the year-ago qu ...