10-QPeriod: Q2 FY2021

ROCKWELL AUTOMATION, INC Quarterly Report for Q2 Ended Mar 31, 2021

Filed April 28, 2021For Securities:ROK

Summary

Rockwell Automation's (ROK) Form 10-Q for the period ending March 31, 2021, demonstrates a strong recovery and growth, particularly in the second quarter. Total sales increased by 5.6% year-over-year to $1.78 billion for the quarter, driven by organic sales growth of 1.3% and contributions from acquisitions and currency translation. The company reported a significant increase in net income attributable to Rockwell Automation, reaching $415.0 million ($3.54 diluted EPS) for the quarter, a substantial jump from $132.2 million ($1.13 diluted EPS) in the prior year period. This surge in profitability was notably boosted by favorable fair-value adjustments on its investment in PTC Inc. and a significant legal settlement. The company's strategic focus on industrial automation and digital transformation appears to be yielding positive results, with particular strength noted in the Intelligent Devices and Software & Control segments. However, the Lifecycle Services segment experienced a sales decline. Looking ahead, Rockwell Automation provided an optimistic outlook for fiscal year 2021, projecting reported sales growth of 9.0%-12.0% and diluted EPS between $12.53-$12.93, reflecting anticipated continued order strength despite ongoing supply chain constraints.

Financial Highlights

52 data points
Beta

Revenue

$1.78B

43.2% Gross Margin

Net Income

$415.00M

23.4% Net Margin

EPS (Diluted)

$3.54

Total Assets

$8.32B

Cash & Equivalents

$641.90M

Free Cash Flow

$223.90M

Financial Statements
Beta
Revenue$1.78B
Cost of Revenue$1.01B
Gross Profit$767.40M
SG&A Expenses$421.30M
Interest Expense$23.30M
Net Income$415.00M
EPS (Basic)$3.57
EPS (Diluted)$3.54
Shares Outstanding (Basic)116.10M
Shares Outstanding (Diluted)117.10M

Key Highlights

  • 1Total sales for the quarter ended March 31, 2021, increased by 5.6% year-over-year to $1.78 billion.
  • 2Net income attributable to Rockwell Automation significantly increased to $415.0 million ($3.54 diluted EPS) in the quarter, up from $132.2 million ($1.13 diluted EPS) in the prior year.
  • 3The company's investment in PTC Inc. contributed positively, with significant fair-value adjustments impacting results.
  • 4The Intelligent Devices segment showed robust growth, with sales up 8.3% year-over-year for the quarter.
  • 5The Software & Control segment also saw healthy sales growth of 12.1% year-over-year for the quarter.
  • 6The Lifecycle Services segment experienced a sales decline of 5.5% year-over-year for the quarter.
  • 7The company provided an optimistic fiscal year 2021 outlook, forecasting reported sales growth of 9.0%-12.0% and diluted EPS of $12.53-$12.93.

Frequently Asked Questions

The substantial increase in net income and diluted EPS was primarily driven by favorable fair-value adjustments related to Rockwell Automation's investment in PTC Inc. Additionally, a significant legal settlement received in the first quarter of fiscal 2021 contributed positively to the results.

The Intelligent Devices segment showed strong sales growth of 8.3% for the quarter, and the Software & Control segment also experienced robust growth of 12.1%. Conversely, the Lifecycle Services segment saw a decrease in sales of 5.5% for the quarter.

Rockwell Automation provided an optimistic outlook, guiding for reported sales growth between 9.0% and 12.0% and diluted Earnings Per Share (EPS) in the range of $12.53 to $12.93 for the full fiscal year 2021. This forecast anticipates continued order strength, though it also acknowledges ongoing supply chain constraints.

Acquisitions contributed approximately 1.9 percentage points to reported sales growth in the three-month period and 1.8 percentage points in the six-month period. No divestitures were noted as having a significant impact.