Free Post Earnings Research Report: Rockwell’s Quarterly Sales Grew 6.5%; Adjusted EPS Advanced 12%

Stock Monitor: 3M Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 29, 2018 / Active-Investors.com has just released a free earnings report on Rockwell Automation Inc. (NYSE: ROK) (“Rockwell”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ROK. Rockwell reported its first quarter fiscal 2018 operating and financial results on January 24, 2018. The industrial equipment and software maker surpassed earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for 3M Company (NYSE: MMM), which also belongs to the Industrial Goods sector as the Company Rockwell Automation. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Rockwell Automation most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ROK

Earnings Highlights and Summary

Rockwell reported Q1 FY18 sales of $1.59 billion, up 6.5% compared to sales of $1.49 billion in Q1 FY17. The Company’s organic sales grew 5.3% in the reported quarter, while currency translation increased sales by 2.5% points, and the prior year divesture reduced sales by 1.3%. Rockwell’s reported numbers fell short of analysts’ estimates of $1.60 billion.

During Q1 FY18, Rockwell’s pre-tax margin was 18.8% compared to 17.3% in Q1 FY17. The Company’s total segment operating margin was 22.4% for the reported quarter compared to 21.2% in the year ago same period. The growth in pre-tax margin and total segment operating margin were primarily attributed to higher sales, partially offset by higher investment spending. Rockwell’s total segment operating earnings were $355.5 million in Q1 FY18, up 12% from $316.6 million in Q1 FY17.

On a GAAP basis, Rockwell’s effective tax rate was 179.4% in Q1 FY18 compared to 16.7% in Q1 FY17. The higher effective tax rate was attributed to provisional charges related to the tax effect of deemed repatriation of foreign earnings of $385.5 million, or 129.5%, and the revaluation of net deferred tax assets totaling $94.2 million, or 31.6%, associated with the Tax Act. The Company’s adjusted effective tax rate was 18.9%, for Q1 FY18 compared to 18.1% in Q1 FY17. For fiscal 2018, the Company is estimating an effective tax rate of approximately 59% and an adjusted effective tax rate of approximately 21%.

For Q1 FY18, Rockwell’s net loss was $236.4 million or $1.84 per share, compared to net income of $214.7 million, or $1.65 per share, in Q1 FY17. The decline in Company’s reported quarter results was attributed to charges associated with the Tax Act, totaling $479.7 million, or $3.68 per share. On an adjusted basis, Rockwell’s earnings came in at $1.96 in Q1 FY18, up 12% compared to $1.75 in Q1 FY17. The increase in adjusted earnings was primarily due to higher sales, partially offset by higher investment spending. The Company’s earnings surpassed Wall Street’s estimates of $1.74 per share.

Rockwell’s Segment Results

During Q1 FY18, the Architecture & Software quarterly sales grew 7.3% to $746.9 million compared to $696.4 million in Q1 FY17. The segment’s organic sales increased 4.6%, and currency translation increased sales by 2.7%. In the reported quarter, the segment’s operating earnings were $224.6 million compared to $208.6 million in the year earlier corresponding quarter. The Architecture & Software segment’s operating margin increased to 30.1% in Q1 FY18 from 30.0% in Q1 FY17, primarily due to higher sales, partially offset by higher investment spending.

For Q1 FY18, the Control Products & Solutions segment’s sales advanced 5.8% to $839.7 million compared to $793.9 million in Q1 FY17. The segment’s organic sales increased 5.9%, currency translation increased sales by 2.3%, while prior year divesture reduced sales by 2.4%. In the reported quarter, Control Products & Solutions segment’s operating earnings were $130.9 million compared to $108.0 million in the year earlier same quarter. The segment’s operating margin increased to 15.6% in Q1 FY18 from 13.6% in Q1 FY17, primarily due to higher sales.

Cash Matters

During Q1 FY18, Rockwell’s cash flow provided by operating activities was $212.7 million and free cash flow was $178.6 million. The Company’s return on invested capital was 40.8%.

During Q1 FY18, Rockwell’ repurchased 1.1 million shares of its common stock at a cost of $208.6 million. At December 31, 2017, the Company had $399.8 million available under the April 06, 2016, share repurchase authorization. On January 15, 2018, Rockwell’s Board of Directors authorized the Company to expend up to an additional $1.0 billion to repurchase shares of its common stock.

Stock Performance Snapshot

January 26, 2018 – At Friday’s closing bell, Rockwell Automation’s stock climbed 1.65%, ending the trading session at $203.01.

Volume traded for the day: 873.03 thousand shares.

Stock performance in the last month – up 4.36%; previous three-month period – up 8.52%; past twelve-month period – up 32.76%; and year-to-date – up 3.39%

After last Friday’s close, Rockwell Automation’s market cap was at $26.29 billion.

Price to Earnings (P/E) ratio was at 31.95.

The stock has a dividend yield of 1.65%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 1.0% at the end of the session.

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