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| 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.