Summary
Rockwell Automation, Inc. (ROK) reported strong sales growth for the nine months ended June 30, 2021, with a 9.0% increase year-over-year, driven by a 4.7% organic sales increase and favorable currency translation. The company's net income attributable to Rockwell Automation significantly increased to $1,279.6 million for the nine-month period, up from $760.7 million in the prior year. This improvement was largely influenced by favorable adjustments related to their investment in PTC Inc. and a significant legal settlement. The company provided an updated fiscal year 2021 outlook, projecting reported sales growth of approximately 12% and diluted EPS between $12.85 and $13.05. Management highlighted the ongoing supply chain challenges, including increased demand, component shortages, and rising costs, which are being actively managed. The company also announced its agreement to acquire Plex Systems for $2.22 billion, expected to close in the fourth quarter of fiscal 2021, which will be financed through a combination of cash and debt.
Financial Highlights
52 data points| Revenue | $1.85B |
| Cost of Revenue | $1.08B |
| Gross Profit | $764.40M |
| SG&A Expenses | $436.90M |
| Interest Expense | $22.40M |
| Net Income | $271.30M |
| EPS (Basic) | $2.34 |
| EPS (Diluted) | $2.32 |
| Shares Outstanding (Basic) | 116.00M |
| Shares Outstanding (Diluted) | 117.00M |
Key Highlights
- 1Total sales increased by 32.6% to $1.85 billion in the three months ended June 30, 2021, and by 9.0% to $5.19 billion for the nine months ended June 30, 2021, compared to the prior year periods.
- 2Net income attributable to Rockwell Automation surged to $1.28 billion for the nine months ended June 30, 2021, a substantial increase from $760.7 million in the same period last year.
- 3Diluted Earnings Per Share (EPS) for the nine months ended June 30, 2021, was $10.91, significantly up from $6.52 in the prior year.
- 4The company announced an agreement to acquire Plex Systems for $2.22 billion, expected to close in the fourth quarter of fiscal 2021.
- 5Fiscal year 2021 guidance projects reported sales growth of approximately 12% and diluted EPS in the range of $12.85 - $13.05.
- 6Operating segments showed strong performance: Intelligent Devices segment operating margin increased to 21.9%, Software & Control to 25.2%, and Lifecycle Services to 10.3% in the third quarter.
- 7Free cash flow for the nine months ended June 30, 2021, was $980.3 million, an increase from $702.8 million in the prior year period.