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10-QPeriod: Q1 FY2017

ROCKWELL AUTOMATION, INC Quarterly Report for Q1 Ended Dec 31, 2016

Filed February 2, 2017For Securities:ROK

Summary

Rockwell Automation, Inc.'s (ROK) Q1 FY17 report for the period ending December 31, 2016, shows solid top-line growth with a 4.5% increase in sales to $1.49 billion, driven by a 3.8% organic sales increase. Both of its segments, Architecture & Software and Control Products & Solutions, contributed to this growth. The company also demonstrated improved profitability, with net income rising to $214.7 million, a 15.7% increase year-over-year, and diluted EPS growing to $1.65. This performance was bolstered by strong operating margin expansion in the Architecture & Software segment.

Financial Statements
Beta
Revenue$1.49B
Cost of Revenue$848.00M
Gross Profit$642.30M
SG&A Expenses$370.00M
Interest Expense$18.70M
Net Income$214.70M
EPS (Basic)$1.67
EPS (Diluted)$1.65
Shares Outstanding (Basic)128.30M
Shares Outstanding (Diluted)129.70M

Key Highlights

  • 1Total sales increased by 4.5% to $1.49 billion, with organic sales up 3.8% year-over-year, indicating underlying business growth.
  • 2Net income grew by 15.7% to $214.7 million, and diluted Earnings Per Share (EPS) rose to $1.65 from $1.40 in the prior year's comparable quarter.
  • 3The Architecture & Software segment showed robust performance with sales up 8.3% and operating margin expanding significantly to 30.0% from 27.4%.
  • 4Operating earnings for the Control Products & Solutions segment saw a decrease of 10% due to higher incentive compensation, despite a slight increase in sales.
  • 5Cash provided by operating activities surged by 68.2% to $310.8 million, leading to a substantial increase in free cash flow to $271.4 million from $145.3 million.
  • 6The company repurchased approximately $80.8 million of its common stock during the quarter, underscoring a commitment to returning capital to shareholders.
  • 7The effective tax rate decreased to 16.7% from 21.7% in the prior year, primarily due to favorable discrete tax items.

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