An efficiency push at Rockwell Automation (ROK 10.67%) paid off in the latest quarterly results, providing reason for investors to get excited about the stock.
Shares of Rockwell were up 10% as of 10:15 a.m. ET, thanks to a strong earnings report and upbeat commentary about the future.
Rockwell provides the tools and systems needed for industrial automation. With companies looking for ways to cut costs, there is a lot of potential for automation tools. But Rockwell shares have gone nowhere in 2024, the result of anemic sales growth as customers shied away from investing in tech in an uncertain macro environment.
Sure enough, Rockwell reported revenue down 8% year over year to $1.88 billion in its fiscal first quarter ending Dec 31. But earnings of $1.83 per share topped Wall Street's $1.58-per-share consensus, thanks to lower-than-anticipated costs.
"Q1 margins and EPS came in well above our expectations this quarter, reflecting some early benefits of Rockwell's renewed focus on operational excellence and cost discipline," CEO Blake Moret said in a statement. "We continue to deliver on our cost reduction and margin expansion projects we outlined last year."
Moret delivered good news on the demand front as well, saying "we are encouraged by better-than-expected order performance in the quarter, with sequential growth across all regions and business segments." New orders were up 10% year over year.
Rockwell Automation is not clear of the turbulence yet, as Moret said "some macroeconomic and policy uncertainty" continues to weigh on capital expenditures (capex) plans at large industrial customers. But the guidance is at least reason for investors to hope the worst is now over.
For long-term stockholders, Rockwell Automation's portfolio of tools to help make its customers more efficient should see sustained demand over time. And for those willing to accept some near-term uncertainty, it is a good time to consider Rockwell Automation.
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。