Rockwell Automation (ROK -16.02%) is struggling, due to persistent supply chain issues and sluggish demand. Shares of the industrial tech company traded down 15% as of 2 p.m. ET on Wednesday after the company reported disappointing results and trimmed guidance.Headwinds blow Rockwell off course in the quarterRockwell is a provider of industrial automation and digital tools that help make warehouses and other facilities more efficient. These are important tools for customers looking to trim costs but also no ...

| --- | --- | --- | --- | --- | |-------|-------|--------------------------------------|-------|------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 Fiscal 2024 Earnings Presentation | | January 31, 2024 | STATEMENT This presentation also contains non-GAAP financial information and reconciliations to GAAP are included in the appendix. All information should be read in conjunction with our historical financial statements. Q1 ...

Rockwell Automation Inc. (ROK) reported adjusted earnings per share (EPS) of $2.04 in first-quarter fiscal 2024 (ended Dec 31, 2023), missing the Zacks Consensus Estimate of earnings of $2.62 per share. The bottom line declined 17% year over year, mainly due to lower operating margins in the Intelligent Devices and Software & Control segments.Including other one-time items, earnings were $1.86 per share in the quarter compared with the year-ago quarter’s earnings of $3.31 per share.Total revenues were $2.05 ...

Blake Moret But the big dynamic that we've been talking about in Q1 is the move from a somewhat concentrated list of SKUs that we have backlog building -- that backlog built up because we couldn't get the chips, moving to bookand-bill of a more diverse set of SKUs as we see the largest portion of our shipments coming from orders received in that quarter, not one or two or three quarters prior. So, that's the main dynamic that we're working through. Noah Kaye Aijana Zellner Our last question will come from J ...

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For the quarter ended December 2023, Rockwell Automation (ROK) reported revenue of $2.05 billion, up 3.6% over the same period last year. EPS came in at $2.04, compared to $2.46 in the year-ago quarter.The reported revenue represents a surprise of -1.12% over the Zacks Consensus Estimate of $2.08 billion. With the consensus EPS estimate being $2.62, the EPS surprise was -22.14%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Rockwell Automation (ROK) came out with quarterly earnings of $2.04 per share, missing the Zacks Consensus Estimate of $2.62 per share. This compares to earnings of $2.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.14%. A quarter ago, it was expected that this industrial equipment and software maker would post earnings of $3.49 per share when it actually produced earnings of $3.64, delivering a surprise of 4.30%.Over t ...

MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) today reported first quarter fiscal 2024 results. " Rockwell had an encouraging start to the fiscal year, with both organic and total sales up low single digits year over year. Importantly, we saw an upward inflection in customer order activity, with total orders up double digits sequentially. Q1 orders were up sequentially across all business segments and regions, with particular strength in North America. High levels of channel inventory a ...

Sales Performance - Total sales increased by 3.6% year-over-year to $2.052 billion in Q1 2024, driven by a 1.0% increase in organic sales, 1.2% from currency translation, and 1.4% from acquisitions[117] - Intelligent Devices segment sales decreased by 1.0% to $927.3 million, while Software & Control segment sales grew by 5.3% to $603.6 million, and Lifecycle Services segment sales increased by 10.5% to $521.2 million[116] - North America sales grew by 5.8% to $1.247 billion, while Asia Pacific sales declined by 7.0% to $275.6 million, primarily due to a high teens decrease in China[119] - Pricing contributed approximately 3 percentage points to total sales growth, while volume decreased sales by 2 percentage points[117] - Total company sales increased to $2,052.1 million in Q4 2023, up from $1,981.0 million in Q4 2022, representing a 3.6% year-over-year growth[40] - Software & Control sales grew 5.3% year-over-year in Q4 2023, with organic sales increasing 4.0% and currency translation contributing 1.3 percentage points[127] - Lifecycle Services sales increased 10.5% year-over-year in Q4 2023, driven by organic growth of 8.1%, currency translation of 1.0%, and acquisitions contributing 1.4%[129] - North America organic sales for Q4 2023 were $1,228.5 million, a 4.2% increase compared to $1,178.9 million in Q4 2022[153] - Europe, Middle East, and Africa organic sales for Q4 2023 were $364.6 million, a 2.2% decrease compared to $372.8 million in Q4 2022[153] - Asia Pacific organic sales for Q4 2023 were $274.6 million, a 7.4% decrease compared to $296.5 million in Q4 2022[153] - Latin America organic sales for Q4 2023 were $132.2 million, a 0.5% decrease compared to $132.8 million in Q4 2022[153] - Total company organic sales for Q4 2023 were $1,999.9 million, a 1.0% increase compared to $1,981.0 million in Q4 2022[153] - Intelligent Devices segment organic sales for Q4 2023 were $894.3 million, a 4.5% decrease compared to $936.2 million in Q4 2022[153] - Software & Control segment organic sales for Q4 2023 were $596.1 million, a 4.0% increase compared to $573.3 million in Q4 2022[153] - Lifecycle Services segment organic sales for Q4 2023 were $509.5 million, an 8.1% increase compared to $471.5 million in Q4 2022[153] Operating Earnings and Margins - Total segment operating earnings decreased by 11.3% to $355.5 million, with Intelligent Devices operating margin declining to 16.2% from 22.4% in the prior year[116] - Intelligent Devices segment operating margin decreased to 16.2% in Q4 2023 from 22.4% in Q4 2022, driven by lower sales volume and acquisition impacts[126] - Lifecycle Services segment operating earnings surged 123.5% year-over-year in Q4 2023, with operating margin improving to 10.4% from 5.2% in Q4 2022[130] - Software & Control segment operating margin declined to 25.0% in Q4 2023 from 29.2% in Q4 2022, impacted by timing of prior-year investment spend and lower supply chain utilization[128] Financial Performance - Adjusted EPS for Q1 2024 was $2.04, compared to $2.46 in the same period last year[116] - Corporate and other expenses increased to $40.0 million in Q4 2023, up from $27.3 million in Q4 2022, driven by acquisition costs and mark-to-market adjustments[120] - Income before income taxes decreased to $259.6 million in Q4 2023, down from $467.9 million in Q4 2022, primarily due to lower mark-to-market gains and segment operating earnings[121] - Total segment operating earnings decreased by 11.3% in Q4 2023, driven by higher investment spend and lower supply chain utilization[122] - The effective tax rate for Q4 2023 was 18.1%, down from 19.1% in Q4 2022, influenced by tax effects from prior investments[123] - Net income attributable to Rockwell Automation was $215.2 million in Q1 2024, down from $384.0 million in Q1 2023, with diluted EPS declining to $1.86 from $3.31[124] - Comprehensive income attributable to Rockwell Automation was $275.5 million in Q4 2023, down from $448.3 million in Q4 2022[16] - Net income attributable to Rockwell Automation, Inc. for Q4 2023 was $215.2 million, compared to $384.0 million in Q4 2022[25] - Basic earnings per share (EPS) for Q4 2023 was $1.87, down from $3.33 in Q4 2022[25] - Diluted EPS for Q4 2023 was $1.86, compared to $3.31 in Q4 2022[25] - Adjusted income for Q4 2023 was $236.0 million, compared to $285.3 million in Q4 2022, with adjusted EPS of $2.04 versus $2.46 in the prior year[135] Cash Flow and Liquidity - Cash used for investing activities in Q4 2023 was $817.4 million, primarily due to business acquisitions and capital expenditures[19] - Cash provided by operating activities in Q4 2023 was $32.6 million, down from $66.3 million in Q4 2022, impacted by changes in working capital[19] - Cash dividends declared were $1.25 per share in Q4 2023, up from $1.18 per share in Q4 2022[21] - Cash provided by operating activities decreased to $32.6 million in Q4 2023 from $66.3 million in Q4 2022, primarily due to higher incentive compensation payments, lower pre-tax income, and higher tax payments[137] - Free cash flow was a net outflow of $35.3 million in Q4 2023, compared to a net inflow of $42.1 million in Q4 2022[137] - Short-term debt as of December 31, 2023, includes commercial paper borrowings of $407.0 million with a weighted average interest rate of 5.41% and a weighted average maturity period of 13 days[138] - Cash and cash equivalents decreased to $439.5 million as of December 31, 2023, from $1,071.8 million as of September 30, 2023[11] - Total current assets decreased to $4,135.9 million as of December 31, 2023, from $4,910.8 million as of September 30, 2023[11] - The company had $501.4 million in short-term debt as of December 31, 2023, compared to $94.7 million as of September 30, 2023[11] - The company repurchased approximately 0.4 million shares of common stock in Q1 2024 at a total cost of $120.3 million, with $820.0 million remaining for share repurchases under the existing board authorization[139] Acquisitions and Investments - The company aims to add 1% growth annually from acquisitions and accelerate growth in annual recurring revenue as part of its long-term profitable growth framework[109] - The company acquired Clearpath Robotics, Inc. in October 2023 for a preliminary aggregate purchase price of $608.5 million, including $43.0 million in contingent consideration[46] - Goodwill increased to $3,966.7 million as of December 31, 2023, from $3,529.2 million as of September 30, 2023, primarily due to the Clearpath acquisition[11] - The company acquired Verve Industrial Protection in November 2023 for a total purchase consideration of $183.2 million, with goodwill of $133.0 million assigned to the Lifecycle Services segment[50] - The company acquired CUBIC in October 2022 and Knowledge Lens in February 2023, with total net assets acquired of $186.2 million and goodwill of $111.3 million assigned to the Intelligent Devices and Lifecycle Services segments respectively[55][56] - Goodwill increased by $400.0 million in Q4 2023, primarily due to acquisitions, with a total balance of $3,966.7 million as of December 31, 2023[60] - Other intangible assets totaled $1,190.4 million as of December 31, 2023, with estimated amortization expenses of $153.5 million in 2024[61] - Total investments increased from $157.7 million as of September 30, 2023, to $162.5 million as of December 31, 2023, driven by growth in equity securities and other investments[66] Long-Term Strategy and Market Conditions - The company's long-term strategy focuses on digitization, artificial intelligence, energy transition, sustainability, and addressing labor shortages through technology differentiation[107] - U.S. Industrial Production (IP) Index declined to 99.0 in Q1 2024 from 99.6 in Q4 2023, while Manufacturing PMI remained below 50 at 47.4, indicating contraction[111] - The company is managing supply chain challenges by extending order visibility, securing long-term supply agreements, and investing in capacity to normalize product lead times[115] Tax and Other Financial Metrics - The effective tax rate decreased to 18.1% in Q4 2023 from 19.1% in Q4 2022, primarily due to the geographical mix of pre-tax income[90] - Contract liabilities balance increased to $673.9 million at the end of Q4 2023, up from $653.6 million at the beginning of the year[41] - Unrecognized tax benefits stood at $10.8 million at December 31, 2023, with accrued interest and penalties of $1.0 million[92] - The company expects to recognize approximately $1,121 million of revenue from unfulfilled performance obligations as of December 31, 2023[37] - Of the $1,121 million in unfulfilled performance obligations, $716 million is expected to be recognized within the next 12 months[37] - Accounts payable included approximately $117.5 million related to supplier financing arrangements as of December 31, 2023[28] - Capital expenditures accrued within Accounts payable and Other current liabilities were $20.5 million at December 31, 2023[26] - The allowance for doubtful accounts was $19.3 million at December 31, 2023, up from $16.8 million at September 30, 2023[24] - Total shareowners' equity increased to $3,787.1 million at December 31, 2023, from $3,743.4 million at September 30, 2023[21] - Long-term debt carrying value was $2,863.0 million as of December 31, 2023, with a fair value of $2,623.1 million[64] - Other current liabilities increased to $608.6 million as of December 31, 2023, primarily due to higher unrealized losses on foreign exchange contracts and accrued interest[65] - Net gain on equity securities was $2.5 million in Q4 2023, compared to $107.1 million in Q4 2022[69] - Net periodic pension benefit cost was $3.4 million in Q4 2023, compared to a credit of $2.5 million in Q4 2022[74] - Other income decreased to $8.9 million in Q4 2023 from $17.3 million in Q4 2022, primarily due to lower non-operating pension and postretirement benefit credits[75] - Accumulated other comprehensive loss decreased from $790.1 million as of September 30, 2023, to $729.8 million as of December 31, 2023, primarily due to currency translation adjustments and net unrealized losses on cash flow hedges[77] - The company reclassified $8.5 million in pre-tax net gains related to cash flow hedges from Accumulated other comprehensive loss into the Consolidated Statement of Operations for the three months ended December 31, 2023[149] - The company expects to reclassify approximately $11.1 million of pre-tax net unrealized losses on cash flow hedges into earnings during the next 12 months[149] Credit and Risk Management - The company replaced its former $1.25 billion unsecured revolving credit facility with a new five-year $1.5 billion unsecured revolving credit facility in June 2022, expiring in June 2027[142] - The company has access to separate short-term unsecured credit facilities of approximately $227.6 million at December 31, 2023, for non-U.S. subsidiaries[144] - The company's credit ratings as of December 31, 2023, include A-1 (short-term) and A (long-term) from Standard & Poor's, P-2 (short-term) and A3 (long-term) from Moody's, and F1 (short-term) and A (long-term) from Fitch Ratings[145] - The majority of the company's cash and cash equivalents were held by non-U.S. subsidiaries as of December 31, 2023[141] - The company uses foreign currency forward exchange contracts to manage foreign currency risks, with no open net investment hedges for the three months ended December 31, 2023[148] - The company maintains insurance coverage for asbestos claims, which is expected to provide substantial coverage for future defense and indemnity costs[84] Intangible Assets and Valuation - The obsolescence factor assumption for the $269.6 million technology asset valuation was 12 years, with a 2-year change potentially impacting intangible assets by $82 million[156] - The weighted average royalty rate assumption for the $41.6 million trademark intangible asset was 2.05%, with a 100 basis point change potentially impacting intangible assets by $20 million[156] Share-Based Compensation and Equity - Share-based compensation expense increased to $24.2 million in Q4 2023 from $18.4 million in Q4 2022[44]

Rockwell Automation (ROK) closed the most recent trading day at $303, moving -0.41% from the previous trading session. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.The the stock of industrial equipment and software maker has fallen by 2.05% in the past month, lagging the Industrial Products sector's loss of 0.09% and the S&P 500's gain of 3.05%.The upcoming earnings release of Rockwell Automation will be of great interest t ...