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Mar 31, 2020

Rockwell Automation Q2 2020 Earnings Report

Rockwell Automation reported second quarter results, with sales up slightly and adjusted EPS increasing due to lower incentive compensation expense.

Key Takeaways

Rockwell Automation reported a 1.5% increase in sales compared to the previous year. Adjusted EPS increased by 19% year over year, primarily driven by lower incentive compensation expenses. The company is updating its fiscal year 2020 diluted and adjusted EPS guidance due to the impact of COVID-19.

Reported sales increased by 1.5 percent year over year; organic sales were flat.

Inorganic investments contributed 3 percent to reported sales growth.

Diluted EPS was $1.13; Adjusted EPS was $2.43.

Cash Flow from Operations was $217.4 million, up 51 percent; Free Cash Flow was $197.8 million, up 89 percent.

Total Revenue
$1.68B
Previous year: $1.66B
+1.4%
EPS
$2.43
Previous year: $2.04
+19.1%
Pre-Tax Margin
10%
Previous year: 24.3%
-58.8%
Segment Operating Margin
22.1%
Previous year: 21.3%
+3.8%
Effective Tax Rate
22.4%
Previous year: 14%
+60.0%
Gross Profit
$699M
Previous year: $708M
-1.3%
Cash and Equivalents
$642M
Previous year: $780M
-17.7%
Free Cash Flow
$198M
Previous year: $105M
+88.6%
Total Assets
$6.67B
Previous year: $6.25B
+6.6%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation updated its fiscal year 2020 sales growth and EPS guidance, taking into account the expected impacts of the COVID-19 pandemic and recent acquisitions.

Positive Outlook

  • Protecting our people
  • Protecting our business resources
  • Forging deeper partnerships
  • Helping our customers recover
  • Helping our customers thrive

Challenges Ahead

  • COVID-19 pandemic is rapidly evolving
  • Duration of supply chain impacts is highly uncertain
  • Severity of business operations impacts is highly uncertain
  • Geographic scope of financial condition impacts is highly uncertain
  • Impacts on suppliers, distributors, business partners and customers are highly uncertain

Revenue & Expenses

Visualization of income flow from segment revenue to net income