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Rockwell Automation, Inc. (ROK), based in Milwaukee, Wisconsin, is a global leader in industrial automation and digital transformation. With a market cap of $30.8 billion, Rockwell’s expertise spans control systems, motor control devices, sensors, and industrial control panels.
The company empowers industries to optimize efficiency and embrace cutting-edge technology. By merging industrial operations with smart, connected systems, Rockwell has positioned itself at the forefront of the future of manufacturing, driving innovation across sectors worldwide. The industrial equipment and software maker is gearing up to unveil its Q4 earnings on Thursday, Nov. 7 before the market opens.
Ahead of the event, analysts expect Rockwell Automation to report a profit of $2.40 per share, down 34.1% from $3.64 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. Its fiscal Q3 adjusted EPS of $2.71, down 10% year over year, beat the projections by 28.4%.
For fiscal 2024, analysts expect Rockwell Automation to report EPS of $9.65, down 20.4% from $12.12 in fiscal 2023. However, looking ahead, the company’s bottom line is projected to surge 7.1% year over year to $10.33 per share in fiscal 2025.
ROK has underperformed the S&P 500 Index’s ($SPX) 38.7% gains over the past 52 weeks, with shares up just 2.5% during this period. Similarly, it lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 38.6% gains over the same time frame.
Shares of Rockwell Automation have struggled in 2024, underperforming the broader market amid a sluggish manufacturing sector and economic headwinds. Slower-than-expected demand, project delays, and uncertainty have dampened customer investments.
On Aug. 7, ROK stock closed down marginally after its Q3 earnings results despite beating Wall Street’s projections. Rockwell’s decision to lower its guidance for the third consecutive quarter weighed on investor sentiment. The company cut its full-year profit outlook, citing weaker consumer demand, high interest rates, and policy uncertainty. While quarterly results were solid, these challenges have kept investors cautious and the stock’s performance under pressure.
Rockwell Automation has a consensus “Hold” rating overall. Of the 21 analysts covering the stock, six advise a “Strong Buy,” 11 suggest a “Hold,” and the remaining four recommend a “Strong Sell.”
The mean price target of $271.33 suggests a marginal potential upside from current price levels. However, the Street-high target of $320 implies the stock could rally as much as 18.6%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
