Industrials automation company Rockwell (NYSE: ROK) will be announcing earnings results this Tuesday before market open. Here’s what to look for.
Rockwell Automation beat analysts’ revenue expectations last quarter, reporting revenues of $2.11 billion, up 11.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Rockwell Automation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Rockwell Automation’s revenue to grow 7.8% year on year, a reversal from the 5.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rockwell Automation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Rockwell Automation’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AMETEK delivered year-on-year revenue growth of 11.3%, beating analysts’ expectations by 0.6%, and LSI reported revenues up 13.6%, topping estimates by 9%. AMETEK traded up 1.1% following the results while LSI was also up 6.7%.
Read our full analysis of AMETEK’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 9.4% on average over the last month. Rockwell Automation is up 11% during the same time and is heading into earnings with an average analyst price target of $421.57 (compared to the current share price of $407.75).
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