FX.co ★ Rockwell Automation Cuts FY24 Outlook Below Market After Weak Q2 Results; Stock Down In Pre-market

Rockwell Automation Inc. (ROK) recently reported lagging profit and revenue for its second quarter, leading to a revised prediction for its fiscal 2024. Before market opening on the NYSE, Rockwell's shared dropped approximately 5.6 percent to a trading amount of $262.

Rockwell observed an increasing surplus of inventory among its clients, particularly machine builders, which was overlooked initially. This has resulted in the company's orders not accelerating as expected within this financial year.

The company revised its fiscal 2024 earnings forecast down to $8.80 to $9.80 per share, in contrast to the previously expected $11.24 to $12.74 per share. Updated projections suggest an adjusted earnings per share of between $10.00 and $11.00, compared to the former forecast of $12.00 to $13.50 per share.

Analysts' average projection, based on Thomson Reuters data, expected the company to earn $11.92 per share. This estimate usually excludes extraordinary items.

As for its sales, Rockwell now anticipates a decrease of 4 percent to 6 percent, whereas earlier it predicted a growth range of 0.5 percent to 6.5 percent. Organic sales should now experience a reduction between 6 percent and 8 percent, as opposed to an earlier forecast of a 2 percent decline to 4 percent growth.

Even though Rockwell's profit for this second quarter diminished from the previous year, it managed to surpass market predictions. The firm's earnings amounted to $266.2 million, or $2.31 per share, a decline from last year's second quarter earnings of $300.3 million, or $2.59 per share. The adjusted earnings for this period amounted to $288.0 million or $2.50 per share. Analysts had projected earnings of $2.16 per share.

Lastly, the company's revenue for the quarter declined 6.6 percent from $2.28 billion to $2.13 billion compared to the same period last year.