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Rockwell Automation
🇺🇸 NYSE:ROK
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Mar 31, 2022

Rockwell Automation Q2 2022 Earnings Report

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.

Key Takeaways

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.

Total Revenue
$1.81B
Previous year: $1.78B
+1.8%
EPS
$1.66
Previous year: $2.41
-31.1%
Pre-Tax Margin
2.3%
Previous year: 28.6%
-92.0%
Segment Operating Margin
15.7%
Previous year: 22%
-28.6%
Effective Tax Rate
-20.2%
Previous year: 19.2%
-205.2%
Gross Profit
$664M
Previous year: $767M
-13.5%
Cash and Equivalents
$443M
Previous year: $642M
-31.0%
Free Cash Flow
$45.9M
Previous year: $224M
-79.5%
Total Assets
$10.7B
Previous year: $8.32B
+28.8%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

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.

Positive Outlook

  • 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.

Challenges Ahead

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Rockwell Automation