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Rockwell Automation’s Fiscal 1Q17 Earnings Overview

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Part 7
Rockwell Automation’s Fiscal 1Q17 Earnings Overview PART 7 OF 7

What to Expect from Rockwell Automation’s Future Earnings

Sales outlook

Rockwell Automation’s (ROK) fiscal 1Q17 earnings were driven by a YoY (year-over-year) increase in the company’s organic sales. Moving ahead, the company expects continued growth in its consumer and transportation (IYT) verticals. However, Rockwell expects growth to remain nearly flat in its heavy industry vertical.

What to Expect from Rockwell Automation’s Future Earnings

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Rockwell Automation (ROK) based its sales projections on higher expected global GDP and industrial production growth rates in 2017. Considering the macro outlook and strong organic sales growth in fiscal 1Q17, the company revised its organic growth range to 1%–5% compared to its previous guidance of 0%–4%.

However, the company retained its fiscal 2017 sales midpoint guidance at ~$6 billion after including the impact of additional currency translation headwinds offsetting the growth from its acquisitions. Also, the company maintained its segment operating margin guidance at 20%.

Rockwell Automation’s EPS guidance

Following its strong fiscal 1Q17 results and the expected decline in its adjusted effective tax rate, Rockwell Automation upgraded its fiscal 2017 EPS (earnings per share) guidance to $5.95–$6.35 from its prior EPS guidance of $5.85–$6.25.

The company now expects its full-year free cash flow conversion to be above 100% compared to its prior guidance of about 100%.

Analysts’ expectations

Following Rockwell Automation’s (ROK) fiscal 1Q17 results, analysts revised up their future EBITDA1 estimates for ROK. For the coming quarter, analysts expect Rockwell’s EBITDA to be ~$293 million, compared to the pre-fiscal 1Q17 estimates of $286 million.

Analysts anticipate that ROK’s EBITDA margins should be ~20.1% compared to the pre-fiscal 1Q17 estimate of 19.6%.

What to Expect from Rockwell Automation’s Future Earnings

Investors can also look into our earnings series on other industry players such as Lockheed Martin (LMT), Honeywell International (HON), and Northrop Grumman (NOC).

  1. earnings before interest, tax, depreciation, and amortization
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