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Valued at a market cap of $26.5 billion, Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. The Milwaukee, Wisconsin-based company offers advanced technologies and solutions that help businesses improve productivity, safety, and sustainability across manufacturing and industrial operations. It is scheduled to announce its fiscal Q2 earnings for 2025 before the market opens on Wednesday, May 7.
Ahead of this event, analysts expect this industrial automation company to report a profit of $2.09 per share, down 16.4% from $2.50 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q1, ROK’s EPS of $1.83 outpaced the forecasted figure by 13.7%.
For fiscal 2025, analysts expect ROK to report a profit of $9.21 per share, down 5.2% from $9.71 in fiscal 2024. Nevertheless, its EPS is expected to rebound in fiscal 2026, and grow by 17.7% year over year to $10.84.
ROK has fallen 14.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 5.5% gain, and the Industrial Select Sector SPDR Fund’s (XLI) 2.7% uptick over the same time frame.
On Feb. 10, shares of ROK skyrocketed 12.7% after its Q1 earnings release. While its revenue declined 8.3% year-over-year to $1.9 billion, mainly due to a drop in orders and a decrease in organic sales, the market reacted positively to the company’s stronger-than-expected profitability. Its adjusted EPS came in at $1.83, 10.3% lower than the year-ago quarter but a notable 13.7% above consensus estimates. The company credited its renewed focus on operational efficiency and cost discipline for driving Q1 margins and EPS significantly above expectations. Looking ahead, Rockwell expects a gradual, sequential improvement in both sales and margins throughout the fiscal year, further supporting the positive investor sentiment.
Wall Street analysts are moderately optimistic about ROK’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 10 recommend "Strong Buy," 10 suggest “Hold,” and three advise “Strong Sell.” The mean price target for ROK is $277.24, which indicates an 18.3% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
