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Rockwell Automation’s Fiscal 1Q17 Results: What to Expect

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Part 3
Rockwell Automation’s Fiscal 1Q17 Results: What to Expect PART 3 OF 5

Rockwell Automation’s Fiscal 1Q17 Revenues: What Analysts Expect

Rockwell Automation’s revenue estimates

Rockwell Automation (ROK) reported about ~$1.43 billion in consolidated revenues for fiscal 1Q16. Analysts estimate that Rockwell will report ~$1.42 billion in fiscal 1Q17 revenues, which is a ~1% fall on a YoY (year-over-year) basis.

According to the company’s 4Q16 earnings call, Rockwell Automation expects to witness a lower growth rate in the first half of the year as compared to 2H17 due to the beginning backlog in the company’s solutions and services business.

Rockwell Automation&#8217;s Fiscal 1Q17 Revenues: What Analysts Expect

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The company also expects a fall in its margins, primarily due to the restoration of incentive compensation, an increase in operating pension expenses, and an unfavorable currency impact from the rolling of currency (UUP) hedges that the company placed in 2016.

Margin estimates

In 1Q16, Rockwell Automation’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was about $311 million, while its EBITDA margin was 21.8%. For 1Q17, analysts expect Rockwell Automation to report about $291 million in EBITDA and 20.4% as its EBITDA margin. Remember, a lower EBITDA figure implies lower income from the company’s ongoing operations.

Rockwell Automation&#8217;s Fiscal 1Q17 Revenues: What Analysts Expect

Rockwell’s EBITDA margins are expected to be higher than those of peers Emerson Electric (EMR) and Honeywell International (HON) but lower than that of AMETEK (AME) in the companies’ respective upcoming earning results.

In the next part of this series, we’ll know about Rockwell Automation’s fiscal 2017 guidance.

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