NYSE$ROK

Rockwell Automation Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Rockwell Automation reported mixed results for Q2 2022, with sales slightly up but earnings significantly impacted by fair value adjustments related to its investment in PTC.

Rockwell Automation's Q2 2022 results showed a slight increase in sales, up 1.8% year-over-year to $1,808 million, with organic sales up 1.3%. However, net income attributable to Rockwell Automation decreased significantly to $53.9 million, or $0.46 per share, compared to $415 million, or $3.54 per share in the prior year, primarily due to fair value adjustments related to its investment in PTC. Adjusted EPS was $1.66, down 31.1% year-over-year. The company has updated its fiscal year 2022 guidance, reflecting strong demand and a record backlog amidst ongoing supply chain constraints.

  • Total orders increased by 37% year-over-year and sequentially.
  • Reported sales increased by 1.8% year-over-year, with organic sales up 1.3%.
  • Diluted EPS was $0.46, and Adjusted EPS was $1.66.
  • The board authorized an additional $1.0 billion for share repurchases.

Headline financials

Total Revenue

$1.81B

Previous: $1.78B+1.8%
EPS (adj)

$1.66

Previous: $2.41-31.1%
Pre-Tax Margin

2.3%

Previous: 28.6%-92.0%
Segment Operating Margin

15.7%

Previous: 22.0%-28.6%
Effective Tax Rate

-20.2%

Previous: 19.2%-205.2%
Capital Expenditures

-$82M

Previous: -$52.1M-57.4%
Free Cash Flow

-$28.1M

Previous: $363M-107.7%
Net Income

$53.9M

Previous: $415M-87.0%
Operating Income

$249M

Previous: $387M-35.5%
Gross Profit

$664M

Previous: $767M-13.5%
Cash & Equivalents

$443M

Previous: $642M-31.0%
Total Assets

$10.7B

Previous: $8.32B+28.8%
Stock-Based Comp

$15.7M

Previous: $12.9M+21.7%

Revenue & EPS history

Rockwell Automation · Revenue · Quarterly

$1.81B

Q2 2022+1.8%vs Q2 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Rockwell Automation · $1.27B total across 2 segments · Q2 2022

  • Intelligent Devices
    $809M-4.9%
  • Lifecycle Services
    $465M+9.7%

Forward guidance

Rockwell Automation updated its fiscal 2022 guidance, reflecting strong demand and a record backlog along with their latest view of supply chain constraints. However, the global supply chain remains volatile with new pressures from COVID-19 related shutdowns in China and the war in Ukraine that are difficult to quantify.

Tailwinds

  • Reported sales growth updated to 11% - 15%.
  • Organic sales growth updated to 10% - 14%.
  • Inorganic sales growth is projected to be approximately 2.5%.
  • Adjusted EPS guidance updated to $9.20 - $9.80.
  • Strong continuing demand driven by capital investment.

Headwinds

  • Currency translation is expected to decrease sales by approximately (1.5)%.
  • Diluted EPS guidance updated to $7.60 - $8.20.
  • The global supply chain remains volatile.
  • COVID-19 related shutdowns in China are creating new pressures.
  • The war in Ukraine is creating new pressures that are difficult to quantify.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.1%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+12.7%

Q3 2022

Best reaction

-14.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.6%+13.2%+14.4%
Q1 2026-5.4%-4.0%-14.0%
Q4 2025+2.8%+8.1%+11.5%
Q3 2025-5.0%-4.7%-1.8%
Q2 2025+12.0%+18.5%+28.2%
Q1 2025+12.6%+9.7%-2.4%
Q4 2024-7.4%-5.5%+0.5%
Q3 2024+3.3%+0.9%+2.0%
Q2 2024-1.4%-1.4%-8.0%
Q1 2024-14.4%-13.3%-5.9%
Q4 2023-1.2%-3.7%+5.4%
Q3 2023-9.5%-11.1%-7.2%
Q2 2023+4.7%+3.1%+5.8%
Q1 2023+3.0%+1.4%+4.4%
Q4 2022-5.0%-1.9%+3.8%
Q3 2022+12.7%+15.1%+8.0%
Q2 2022-11.1%-14.2%-12.0%
Q1 2022-4.5%-2.7%-9.6%
Q4 2021+6.1%+6.0%+7.4%
Q3 2021+0.5%+3.2%+7.4%
Q2 2021-0.3%-2.8%-1.8%
Q1 2021-7.6%-4.7%-6.3%
Q4 2020-4.9%-5.9%-3.1%
Q3 2020-3.5%-4.7%+1.3%
Q2 2020+8.4%+0.8%+19.1%
Q1 2020-0.9%-1.1%-6.7%
Q4 2019+10.5%+11.8%+14.7%
Q3 2019-2.5%-2.1%-12.4%
Q2 2019-5.5%-4.3%-18.1%
Q1 2019+5.3%+3.5%+9.4%
Q4 2018-2.7%-6.3%-8.8%
Q3 2018+8.0%+7.2%+2.7%
Q2 2018+2.0%+1.6%+9.9%
Q1 2018-2.4%-2.4%-9.4%
Q4 2017-5.5%-4.1%-4.0%
Q3 2017+1.1%+1.2%-2.1%
Q2 2017-0.5%-2.3%-0.5%
Q1 2017+7.7%+5.1%+6.4%
Q4 2016+6.4%+12.0%+18.2%
Q3 2016-3.7%-5.5%-2.3%
Q2 2016-1.4%
Q1 2016-1.4%
Q4 2015-3.6%
Q3 2015-1.8%
Q2 2015+7.9%
Q1 2015+2.6%
Q4 2014-4.2%
Q3 2014-6.9%
Q2 2014-4.3%
Q1 2014+0.1%
Q4 2013+2.5%
Q3 2013+7.0%
Q2 2013+2.1%
Q1 2013-0.8%
Q4 2012+4.5%
Q3 2012-0.5%
Q2 2012+0.1%
Q1 2012-5.1%
Q4 2011-0.3%
Q3 2011-11.8%
Q2 2011+2.0%
Q1 2011+4.5%
Q4 2010+3.8%
Q3 2010+0.4%
Q2 2010-4.3%
Q1 2009+2.0%
Q1 2010+1.2%
Q2 2009-1.3%
Q4 2009-1.3%
Q4 2007-1.3%
Q3 2009-1.3%
Q3 2008-1.3%
Q4 2008-1.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro