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Jun 30, 2020

Rockwell Automation Q3 2020 Earnings Report

Rockwell Automation's Q3 2020 earnings decreased due to lower sales, but earnings were higher than expected driven by better organic sales.

Key Takeaways

Rockwell Automation reported a decrease in sales by 16.3% year-over-year, with organic sales declining by 17.6%. Diluted EPS was $2.73, while Adjusted EPS was $1.27. Despite difficult conditions, earnings exceeded expectations due to better organic sales. The company is reorganizing into three operating segments - Intelligent Devices, Software & Control, and Lifecycle Services - to accelerate profitable growth.

Reported sales decreased by 16.3% year-over-year, and organic sales declined by 17.6%.

Inorganic investments contributed 3% to reported sales.

Diluted EPS was $2.73, and Adjusted EPS was $1.27.

Liquidity position was enhanced by strong cash flow generation.

Total Revenue
$1.39B
Previous year: $1.67B
-16.3%
EPS
$1.27
Previous year: $2.4
-47.1%
Pre-Tax Margin
24%
Previous year: 19.3%
+24.4%
Segment Operating Margin
16.5%
Previous year: 23.8%
-30.7%
Return on Invested Capital
27.9%
Gross Profit
$554M
Previous year: $730M
-24.1%
Cash and Equivalents
$910M
Previous year: $789M
+15.3%
Free Cash Flow
$311M
Previous year: $323M
-3.9%
Total Assets
$7.33B
Previous year: $6.16B
+19.0%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation provided guidance for fiscal year 2020, projecting a continuing gradual recovery with no increase in pandemic-related facility closures or supply chain disruptions.