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ROK - Rockwell Automation Inc
$286.23
12.80(4.68%)8:01:57 PM 5/26/2023
Rockwell Automation, Inc. , is an American provider of industrial automation and information technology. Brands include Allen-Bradley and FactoryTalk software. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs over 23,000 people and has customers in more than 100 countries worldwide. The Fortune 500 company reported fiscal year 2019 global sales at $6.69 billion.

Financials

Quarterly financials
(USD)Mar 2023Q/Q
Revenue2.3B+15%
Gross Profit932.5MM+15%
Cost Of Revenue1.3B+15%
Operating Income351.4MM-25%
Operating Expenses581.1MM-
Net Income300.3MM-22%
G&A501.2MM+7%
Interest Expense35.8MM+5%

Revenue Breakdowns

The revenue breakdowns above are extracted from this specific SEC Edgar 10-Q filling, with report date as 2022-12-31 and filed on 2023-01-26. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.

Highlights of Management Discussion and Risk Factors in 10-K/10-Q filling

Positive
1.
All regions experienced organic sales growth in the three months ended December 31, 2022.Segment Operating MarginSoftware & Control segment operating earnings increased 42.3 percent year over year in the three months ended December 31, 2022.
2.
Segment operating margin increased to 29.2 percent in the three months ended December 31, 2022, from 22.9 percent in the same period a year ago, primarily driven by higher sales, including pricing increases, and the favorable year-over-year impact from the Plex acquisition, partially offset by higher input costs.
3.
Our updated guidance reflects first quarter performance and record backlog.
4.
It also assumes a gradually improving supply chain environment.
5.
2023 first quarter adjusted EPS was $2.46, up 15.0 percent compared to $2.14 in the first quarter of 2022, primarily due to higher sales, partially offset by higher input costs.28Table of ContentsIntelligent DevicesSalesIntelligent Devices sales increased 4.0 percent year over year in the three months ended December 31, 2022.
6.
Organic sales increased 9.9 percent year over year in the three months ended December 31, 2022.
7.
By implementing the above strategy, we seek to achieve our long-term financial goals, including above-market organic sales growth, increasing the portion of our total revenue that is recurring in nature, EPS growth above sales growth, return on invested capital in excess of 20 percent, and free cash flow equal to about 100 percent of adjusted income.
8.
Total segment operating earnings increased 12.9 percent in the three months ended December 31, 2022, primarily due to higher sales, including pricing increases, partially offset by higher input costs and higher investment spend.
9.
For the three months ended December 31, 2022, reported and organic sales increased in all regions.
10.
Software & ControlSalesSoftware & Control sales increased 11.6 percent year over year in the three months ended December 31, 2022.
11.
Lifecycle ServicesSalesLifecycle Services sales increased 6.4 percent year over year in the three months ended December 31, 2022.
12.
Pricing increased total company sales by approximately 7 percentage points in the three months ended December 31, 2022, realized in the Intelligent Devices and Software & Control segments.
13.
We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable.
14.
In addition to the global factors previously mentioned in the Overview section, international demand, particularly in emerging markets, has historically been driven by the strength of the industrial economy in each region, investments in infrastructure, and expanding consumer markets.
15.
All regions experienced growth in reported and organic sales in the three months ended December 31, 2022, except for Latin America.
16.
Intelligent Devices organic sales increased 6.6 percent year over year, currency translation decreased sales by 4.1 percentage points year over year, and the acquisition of CUBIC increased sales by 1.5 percentage points year over year in the three months ended December 31, 2022.
17.
See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on this non-GAAP measure.27Table of Contents Three Months Ended December 31, 2022, Compared to Three Months Ended December 31, 2021SalesSales increased 6.7 percent year over year in the three months ended December 31, 2022.
18.
Lifecycle Services organic sales increased 10.2 percent year over year, currency translation decreased sales by 4.2 percentage points year over year, and acquisitions increased sales by 0.4 percentage points year over year in the three months ended December 31, 2022.
19.
The increases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to the PTC adjustments and higher sales, partially offset by higher input costs.
20.
Acquisitions increased sales by 0.8 percentage points year over year in the three months ended December 31, 2022.
21.
Additional actions we are taking include:•extending order visibility to our supply base to ensure we are appropriately planning for extended component lead times;•securing longer-term supply agreements with critical partners;•re-engineering of existing products to increase component supply resiliency;•capacity investments, including redundant manufacturing lines and additional electronic assembly equipment; and•qualification of additional suppliers to diversify our supplier base.
22.
We deliver customer outcomes by combining advanced industrial automation with the latest information technology.
23.
We expect acquisitions to add a percentage point or more per year to long-term sales growth.
24.
According to the ISM, a PMI measure above 50 indicates that the U.S. manufacturing economy is generally expanding while a measure below 50 indicates that it is generally contracting.
25.
For the three months ended December 31, 2022, reported sales increased in North America and Latin America but decreased in EMEA and Asia Pacific.
26.
The increase was primarily due to fair value adjustments recognized in 2023 compared to 2022 in connection with our investment in PTC (the "PTC adjustments") as well as higher sales, partially offset by higher input costs.
Negative
1.
Manufacturing PMI results also softened in the first quarter of 2023.
2.
Segment Operating MarginIntelligent Devices segment operating earnings decreased 1.7 percent year over year in the three months ended December 31, 2022.
3.
Segment operating margin decreased to 22.4 percent in the three months ended December 31, 2022, from 23.7 percent in the same period a year ago.
4.
Segment Operating MarginLifecycle Services segment operating earnings decreased 0.8 percent year over year in the three months ended December 31, 2022.
5.
Although there has been a gradual improvement in the supply chain environment, this has resulted in and could continue to result in:•challenges in our supply chain;•difficulty in procuring or inability to procure components and materials necessary for our hardware and software products, solutions, and services;•increased costs for commodities and components; and•delays in delivering, or an inability to deliver, our hardware and software products, solutions, and services.
6.
PMI readings were mostly lower in the first quarter of 2023 and readings for many countries ended the quarter below 50.
7.
The supply chain has been stressed by increased demand, along with pandemic-related and other global events that have put additional pressures on manufacturing output.
8.
Currency translation decreased sales by 4.0 percentage points year over year in the three months ended December 31, 2022.
9.
Although higher than historic measures, the PPI year over year increase has declined over the past three quarters.
10.
Our customers face the challenge of remaining globally cost competitive and automation can help them achieve their productivity and sustainability objectives.
11.
Industrial Output outside the U.S. was lower in the first quarter of 2023 versus the fourth quarter of 2022.
12.
We believe these and other actions we are taking will over time normalize our product lead times and reduce our backlog.
13.
Software & Control organic sales increased 15.5 percent year over year and currency translation decreased sales by 3.9 percentage points year over year in the three months ended December 31, 2022.
14.
The IP Index declined in the first quarter of 2023 versus the fourth quarter of 2022.
The management discussion contents above are extracted from this specific SEC Edgar 10-Q filling, with report date as 2022-12-31 and filed on 2023-01-26. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.
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