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Rockwell Automation Q4 Adjusted EPS beats estimates

By Reuters News


Overview

  • U.S. industrial automation firm's fiscal Q4 sales up 1% yr/yr, missing analyst expectations

  • Adjusted EPS for fiscal Q4 rose 16% and beat analyst expectations

  • Company repurchased $500 mln in shares during the quarter


Outlook

  • Rockwell Automation sees fiscal 2027 reported sales growth of 4.5% to 7.5%

  • Company expects fiscal 2027 organic sales growth of 6% to 9%

  • Rockwell Automation forecasts fiscal 2027 adjusted EPS of $14.50 to $15.50


Result Drivers

  • TARIFF REFUND PROGRAM - Q4 sales growth reduced by ~4 percentage points due to customer tariff refund program, while IEEPA tariff refunds and related items had a net positive impact on margins and EPS

  • SEGMENT PERFORMANCE - Software & Control segment saw 15% sales growth and higher margins, while Intelligent Devices grew 5%; Lifecycle Services sales declined due to divestitures, though organic sales rose 2%

  • MARGIN EXPANSION - Higher sales volume, favorable mix, and benefits from Sensia joint venture dissolution contributed to increased operating and segment margins, partly offset by higher compensation costs


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Miss

$2.33 bln

$2.41 bln (18 Analysts)

Q4 Adjusted EPS

Beat

$3.88

$3.69 (20 Analysts)

Q4 EPS

$3.11

Q4 Net Income

$346 mln

Q4 Free Cash Flow

$602 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Rockwell Automation Inc is $485.00, about 9.3% above its November 4 closing price of $443.88

  • The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 33 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Zebra Technologies Q3 revenue beats on strong demand across segments

  • Nov 3 - AMETEK Q3 sales beat estimates, raises outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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