Rockwell Automation(US:ROK) ZACKS·2025-02-10 17:30Core Viewpoint - Rockwell Automation Inc. reported adjusted earnings per share (EPS) of $1.83 for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.61, despite a 10% year-over-year decline in the bottom line due to lower sales volume [1][2]. Financial Performance - The company’s total revenues for Q1 were $1.88 billion, an 8% decrease from the prior-year quarter, but still surpassing the Zacks Consensus Estimate of $1.87 billion [2]. - Organic sales declined by 7.6% year over year, slightly worse than the expected decline of 7.4% [2]. - The cost of sales decreased by 8% year over year to $1.16 billion, while gross profit fell by 9% to $722 million [3]. - Selling, general and administrative expenses decreased by 7% year over year to $476 million [3]. Segment Performance - Intelligent Devices segment reported net sales of $806 million, down 13% year over year, missing the estimate of $823 million [5]. - Software & Control segment saw a significant decline in net sales, plunging 34% year over year to $529 million, although it surpassed the estimate of $502 million [6]. - Lifecycle Services segment achieved net sales of $546 million, up 5% year over year, but below the projected $576 million [8]. Operating Income and Margins - Consolidated segment operating income totaled $321 million, down 9.8% from the prior-year quarter, with a total segment operating margin of 17.1%, slightly lower than 17.3% in the previous year [4]. - The Intelligent Devices segment's operating margin decreased to 14.9% from 16.2% year over year [6]. - The Software & Control segment's operating margin improved to 25.1% from 18.8% in the year-earlier quarter [7]. - Lifecycle Services segment's operating margin increased to 12.5% from 10.6% year over year [8]. Cash Position and Share Repurchase - At the end of Q1 fiscal 2025, cash and cash equivalents remained flat at $0.47 billion, with long-term debt unchanged at $2.56 billion [9]. - Cash flow from operations was $364 million, a significant increase from $33 million in the prior-year quarter [9]. - The company repurchased 0.4 million shares for $99 million during the quarter, with $1.2 billion remaining under the share-repurchase authorization [10]. Guidance for FY25 - Rockwell Automation updated its sales growth guidance to a decline of 5.5% to growth of 0.5%, previously projected as a decline of 4% to 2% growth [11]. - The company expects adjusted EPS for fiscal 2025 to be in the range of $8.60 to $9.80, indicating a year-over-year dip of 5% at the midpoint [11]. Stock Performance - Over the past year, Rockwell Automation shares have declined by 4.4%, compared to a 32.3% decline in the industry [12].