Rockwell Automation, Inc. (NYSE:ROK) is scheduled to report Q4 earnings results on pre-market on November 12, 2019. The company is expected to report earnings of $1.93/share on revenue of $1.655 billion. The consensus earnings per share (EPS) of $1.93/share is based on a poll of 21 analysts and represents a decline of -8.5% over the same quarter last year when the company reported earnings of $2.11/share.
The revenue forecast of $1.655 billion based on a poll of 15 analysts implies a year-over-year (YoY) decline of -4.3%. Last year the company reported $1.730 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Rockwell has experienced weak organic growth and the trend is expected to continue. EPS estimates would be worse if it weren’t for cuts in incentive compensation. Nevertheless the company’s stock price has been rallying since August up around 20%:
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.
What are your expectations from Rockwell Automation for this earnings this quarter? Let us know in the comments!
How important are earnings reports to Rockwell Automation’s stock price performance? It’s more important for some companies than for others. In the following table, we summarize the company’s stock price movements after earnings releases.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -2.5%.
Fundamentals And Technical Analysis
Rockwell Automation is currently trading at $179.20/share, up 0.8% for the day. The company is trading at approximately 93.6% of its 52 week high of $191.48/share. The company’s stock price is up 6.1% since the last earnings report and up 0.6% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 59.58 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 20.1x and a forward P/E multiple of 20.3x. Rockwell Automation’s current share price also implies a price-to-book (P/B) multiple of 18.0x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2019.Q3|
|Period End Date||June 30, 2019|
|Stock Price (Current)||$179.20|
|P/E Ratio (Fwd)||20.3x|
|Total Debt to Capital (%)||9.7%|
|Levered Free Cash Flow||$914.2 million|
|Enterprise Value / EBITDA||14.7x|
Company Profile: Rockwell Automation, Inc.
Rockwell Automation, Inc. is a large-cap stock with a market capitalization of $20.806 billion and a total enterprise value of $22.133 billion. The company operates in the Industrials sector and Electrical Equipment industry.
Rockwell Automation, Inc. provides industrial automation and information technology products to its customers under the brands including Allen-Bradley and Rockwell Software.
The company is headquartered in Milwaukee, Wisconsin, and employs over 22,000 people and has customers in more than 80 countries worldwide.