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Dec 31, 2022

Rockwell Automation Q1 2023 Earnings Report

Rockwell Automation's Q1 2023 earnings exceeded expectations due to strong execution and focus on supply chain resilience, with double-digit earnings growth year-over-year.

Key Takeaways

Rockwell Automation reported a 6.7% increase in sales to $1,981 million, with organic sales up 9.9%. Diluted EPS increased by 61% to $3.31, and adjusted EPS rose by 15% to $2.46. The company updated its fiscal 2023 sales and EPS guidance, reflecting strong Q1 performance and a gradually improving supply chain environment.

Reported sales increased by 6.7% year-over-year, with organic sales up 9.9%.

Currency translation reduced sales by 4.0%, while acquisitions contributed 0.8%.

Organic ARR grew by 14%.

Diluted EPS was $3.31, and adjusted EPS was $2.46, representing increases of 61% and 15% year-over-year, respectively.

Total Revenue
$1.98B
Previous year: $1.86B
+6.7%
EPS
$2.46
Previous year: $2.14
+15.0%
Pre-Tax Margin
23.6%
Previous year: 15.2%
+55.3%
Segment Operating Margin
20.2%
Previous year: 19.1%
+5.8%
Effective Tax Rate
19.1%
Previous year: 15.4%
+24.0%
Gross Profit
$814M
Previous year: $749M
+8.6%
Cash and Equivalents
$460M
Previous year: $540M
-14.8%
Free Cash Flow
$42.1M
Previous year: -$49.1M
-185.7%
Total Assets
$11.1B
Previous year: $10.7B
+3.8%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation updated its fiscal year 2023 guidance, reflecting first quarter performance and record backlog, assuming a gradually improving supply chain environment.

Positive Outlook

  • Reported sales growth updated to 10.0% - 14.0%.
  • Organic sales growth updated to 11.0% - 15.0%.
  • Inorganic sales growth remains at approximately 1.0%.
  • Diluted EPS guidance updated to $10.99 - $11.79.
  • Adjusted EPS guidance updated to $10.70 - $11.50.

Challenges Ahead

  • Currency translation is expected to reduce sales by approximately (2.0)%.
  • The guidance is based on the assumption of a gradually improving supply chain environment, which may not materialize.
  • Actual results may be affected by various risks and uncertainties, including macroeconomic factors, component availability, and geopolitical issues.
  • The company's ability to achieve the expected benefits of strategic transactions could impact future performance.
  • Changes in laws, regulations, and governmental policies could also affect the company's results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income