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Dec 31, 2020

Rockwell Automation Q1 2021 Earnings Report

Rockwell Automation reported first quarter fiscal 2021 results and updated fiscal 2021 guidance.

Key Takeaways

Rockwell Automation's first quarter fiscal 2021 sales were $1,565.3 million, a 7.1% decrease year-over-year. Diluted EPS was $5.06 and Adjusted EPS was $2.38, which includes $0.45 from a favorable legal settlement. The company is updating fiscal 2021 Diluted EPS guidance to $11.07 - $11.47 and Adjusted EPS guidance to $8.70 - $9.10.

Reported sales down 7.1 percent year over year; organic sales down 9.7 percent

Total orders up double digits sequentially, exceeding pre-pandemic levels

Inorganic investments contributed 1.8 percent to reported sales growth

Diluted EPS of $5.06 and Adjusted EPS of $2.38 include $0.45 from a favorable legal settlement

Total Revenue
$1.57B
Previous year: $1.69B
-7.1%
EPS
$2.38
Previous year: $2.11
+12.8%
Pre-Tax Margin
44.8%
Previous year: 19.9%
+125.1%
Segment Operating Margin
19.8%
Previous year: 20.1%
-1.5%
Effective Tax Rate
15.8%
Previous year: 5.7%
+177.2%
Gross Profit
$647M
Previous year: $703M
-8.0%
Cash and Equivalents
$730M
Previous year: $926M
-21.1%
Free Cash Flow
$319M
Previous year: $194M
+64.6%
Total Assets
$8.17B
Previous year: $7.11B
+15.0%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation updates fiscal 2021 Diluted EPS guidance to $11.07 - $11.47 and Adjusted EPS guidance to $8.70 - $9.10, based on strong order performance and assuming no increase in pandemic-related disruptions.

Positive Outlook

  • Reported sales growth 8.5% - 11.5%
  • Diluted EPS $11.07 - $11.47
  • Organic sales growth 4.5% - 7.5%
  • Adjusted EPS $8.70 - $9.10
  • Inorganic sales growth ~1-1.5%

Challenges Ahead

  • COVID-19 pandemic and global efforts to respond to it continue to evolve
  • Our projections assume no increase in pandemic-related facility closures or disruptions to the supply chain.
  • Macroeconomic factors, including global and regional business conditions
  • The availability and price of components and materials
  • Uncertainties of litigation, including liabilities related to the safety and security of the hardware and software products, solutions and services we sell

Revenue & Expenses

Visualization of income flow from segment revenue to net income