Summary
Rockwell Automation, Inc. (ROK) reported its financial results for the quarter ending March 31, 2022. The company experienced a significant year-over-year decrease in net income and diluted EPS, largely driven by substantial negative "PTC adjustments" related to its investment in PTC Inc. The "PTC adjustments" reflect significant losses on the fair value of these investments in the current period, contrasting with gains in the prior year. Despite the drop in reported net income, the company's Adjusted EPS, which excludes these investment fluctuations, also decreased but demonstrated more resilience. Sales showed modest growth, with organic sales increasing across most segments and regions, indicating underlying demand for Rockwell's industrial automation and digital transformation solutions. However, profitability was impacted by rising input costs and increased investment spending. The company maintained a strong outlook for fiscal year 2022, reiterating guidance for robust sales growth and providing EPS guidance, though acknowledging ongoing supply chain volatility.
Financial Highlights
51 data points| Revenue | $1.81B |
| Cost of Revenue | $1.14B |
| Gross Profit | $664.10M |
| SG&A Expenses | $428.50M |
| Interest Expense | $30.10M |
| Net Income | $53.90M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 116.20M |
| Shares Outstanding (Diluted) | 117.10M |
Key Highlights
- 1Net income attributable to Rockwell Automation decreased to $53.9 million from $415.0 million in the prior year's quarter, primarily due to a significant negative impact from changes in the fair value of its PTC investment.
- 2Diluted EPS dropped to $0.46 from $3.54 year-over-year, also heavily influenced by the PTC investment valuation changes.
- 3Adjusted EPS (excluding certain non-recurring or non-operational items) was $1.66, down from $2.41 in the prior year's quarter, reflecting increased input costs and investment spending.
- 4Total sales increased by 1.8% to $1,808.1 million, with organic sales growing by 1.3%, indicating continued demand for the company's products and services.
- 5The Intelligent Devices segment saw a decrease in sales and operating margin due to higher input costs and investment spend, while Software & Control and Lifecycle Services segments showed sales growth.
- 6The company reiterated its positive outlook for fiscal year 2022, guiding for reported sales growth of 11%-15% and Adjusted EPS of $9.20-$9.80, while noting continued supply chain volatility.
- 7Cash provided by operating activities significantly decreased to $78.8 million for the six months ended March 31, 2022, from $595.4 million in the prior year, resulting in negative free cash flow of $3.2 million for the period.