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Rockwell Automation, Inc. (ROK), founded in 1903 and headquartered in Milwaukee, Wisconsin, is a global leader in industrial automation and digital transformation. With a market cap of $31.8 billion, Rockwell Automation provides innovative solutions and technologies that empower manufacturers to enhance productivity, sustainability, and operational efficiency. The company is set to announce its Q1 earnings fiscal 2025 on Wednesday, Jan. 29.
Ahead of this event, analysts expect ROK to report a profit of $1.62 per share, down 20.6% from $2.04 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.
In fiscal Q4, the company reported an EPS of $2.47, which topped the consensus estimates by 2.9%. Rockwell Automation's results reflected gains from cost-reduction efforts and Lifecycle Services growth.
For fiscal 2025, analysts expect ROK to report EPS of $9.37, down 3.5% from $9.71 in fiscal 2024.
ROK has underperformed the S&P 500 Index’s ($SPX) 25.8% gains over the past 52 weeks, with shares down 7.8% during this period. Similarly, it lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 18.7% gains over the same time frame.
Rockwell Automation has underperformed the broader index and its peers due to weaker-than-expected revenue growth, declining margins, and disappointing guidance for the upcoming fiscal year.
On Nov. 7, Rockwell Automation shares fell 5.8% following Q4 earnings. The company reported $2.04 billion in revenue, missing Wall Street estimates by 2.2% and reflecting a 20.6% annual decline. EBITDA came in at $373.5 million, falling short by 12.9%. While the operating margin remained steady at 20.1%, the EBITDA and free cash flow margins dropped to 18.3% and 18%, respectively.
Rockwell Automation has a consensus “Moderate Buy” rating overall, an upgrade from the “Hold” rating three months ago. Among the 21 analysts covering the stock, nine rate it as a “Strong Buy,” 11 recommend a “Hold,” and three advise a “Strong Sell.”
ROK stock has an average price target of $292.76, which suggests a potential upside of 4.1% from its current level.
