Rockwell Automation shares fall premarket after sales and guidance fall short
Rockwell Automation Inc. shares fell 1.8% in premarket trade Thursday, after the maker of industrial automation products missed sales estimates for its fiscal third quarter and offered profit guidance that lagged consensus. Milwaukee-based Rockwell said it had net income of $261.4 million, or $2.20 a share, in the quarter to June 30, up from $198.6 million, or $1.58 a share, in the year-earlier quarter. Adjusted per-share earnings came to $2.40, ahead of the $2.29 FactSet consensus. But sales fell 2% to $1.665.1 billion, below the FactSet consensus of $1.717 billion. "In general, we saw strong growth in our longer-cycle end markets, while shorter-cycle end markets weakened," Chief Executive Blake Moret said in a statement. "Organic sales growth in the quarter was led by heavy industries, including oil and gas, pulp and paper, and mining, as well as life sciences, each of which grew double digits. Growth was tempered by year-over-year declines in automotive, semiconductor, and food and beverage." The company is now expecting adjusted EPS of $8.50 to $8.70 for its full fiscal year. The FactSet consensus is for $8.82. Shares have gained 12% in 2019, while the S&P 500 has gained 20%.
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