Rockwell Automation Q3 Earnings Beat Estimates, Sales Increase Y/Y

Core Insights - Rockwell Automation Inc. (ROK) reported adjusted earnings per share (EPS) of $2.82 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.69 and reflecting a 4% year-over-year improvement [1] - Total sales reached $2.14 billion, a 4.5% increase from the prior-year quarter, surpassing the Zacks Consensus Estimate of $2.07 billion, with organic sales growing by 4% [2] Financial Performance - The cost of sales increased by 1% year over year to $1.27 billion, while gross profit improved by 10.2% to $876 million [3] - Selling, general, and administrative expenses decreased by 0.6% year over year to $498 million [3] - Consolidated segment operating income totaled $454 million, up 6.6% from the prior-year quarter, with a total segment operating margin of 21.2%, an increase from 20.8% in the previous year [4] Segment Results - Intelligent Devices segment net sales were $968 million, up 1% year over year, exceeding estimates [5] - Software & Control segment net sales rose 23% year over year to $629 million, significantly surpassing expectations [6] - Lifecycle Services segment net sales were $547 million, down 6% year over year, falling short of projections [7] Cash Position and Balance Sheet - Cash and cash equivalents at the end of Q3 were approximately $495 million, up from $471 million at the end of fiscal 2024 [9] - Cash flow from operations for the first nine months of fiscal 2025 was $1.09 billion, compared to $0.43 billion in the prior-year period [9] - Long-term debt was reported at $2.62 billion, an increase from $2.56 billion at the end of fiscal 2024 [10] Guidance and Outlook - The company updated its fiscal 2025 sales guidance to a decline of 2% to growth of 1%, improved from a previous forecast of a drop of 4.5% to 1.5% growth [11] - Adjusted EPS guidance for fiscal 2025 was raised to a range of $9.80 to $10.20, up from the prior forecast of $9.20 to $10.20 [11] Stock Performance - Over the past year, Rockwell Automation shares have gained 40.5%, significantly outperforming the industry average growth of 2.5% [12]