Rockwell Automation (NYSE:ROK) just pulled off an earnings beat, and investors are loving it. Shares popped over 13.7% as of 3pm today, after the company reported adjusted earnings per share of $1.83blowing past the $1.58 analysts expected. Revenue dipped 8.4% year-over-year to $1.88 billion, slightly missing estimates, but cost-cutting efforts paid off, cushioning the impact of weaker sales volume. CEO Blake Moret acknowledged ongoing macro uncertainty affecting customer spending but highlighted strong order growth and successful margin expansion initiatives.
Despite the upbeat profit numbers, Rockwell trimmed its full-year sales forecast, now expecting revenue to shrink as much as 5.5% or grow by a modest 0.5%. Orders, however, jumped 10% year-over-year, with major deals locked in across key industries. Software & Control and Intelligent Devices took a hit, down 12% and 13% respectively, while Lifecycle Services defied the trend with 5% growth. On the cash flow front, the company flipped from a $35 million outflow last year to $293 million in free cash flow this quarter, thanks to tighter cost controls and skipping incentive compensation payouts.
Looking ahead, Moret sees a gradual rebound in sales and margins through the year as operational efficiencies kick in. Tariffs and broader economic uncertainty remain wild cards, but Rockwell's strategic positioning in U.S. manufacturing keeps it in the game. Investors took notice, making Rockwell one of the S&P 500's biggest winners of the day.
This article first appeared on GuruFocus.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。