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Jun 30, 2021

Rockwell Automation Q3 2021 Earnings Report

Rockwell Automation reported strong Q3 2021 results with significant sales growth and record orders.

Key Takeaways

Rockwell Automation reported a strong third quarter with sales up 32.6% year over year and organic sales up 26.4%. The company also reported record orders of over $2 billion and updated its fiscal year 2021 guidance.

Reported sales increased by 32.6% year-over-year, with organic sales up 26.4%.

Record orders exceeded $2 billion, showing double-digit growth year-over-year.

Diluted EPS was $2.32, and Adjusted EPS was $2.31.

Cash Flow from Operations reached $461.5 million, with a Free Cash Flow conversion of 161%.

Total Revenue
$1.85B
Previous year: $1.39B
+32.6%
EPS
$2.31
Previous year: $1.27
+81.9%
Pre-Tax Margin
17%
Previous year: 24%
-29.2%
Segment Operating Margin
19.9%
Previous year: 16.5%
+20.6%
Effective Tax Rate
14.2%
Gross Profit
$764M
Previous year: $554M
+37.9%
Cash and Equivalents
$914M
Previous year: $910M
+0.4%
Free Cash Flow
$437M
Previous year: $311M
+40.6%
Total Assets
$8.57B
Previous year: $7.33B
+17.0%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation updated its fiscal 2021 sales growth guidance to approximately 12% and organic sales growth guidance to approximately 8%. Diluted EPS guidance is updated to $12.85 - $13.05, and Adjusted EPS guidance is updated to $9.10 - $9.30.

Positive Outlook

  • Strong quarterly performance
  • Raised outlook reflecting high level of execution
  • Organic and inorganic investments to accelerate strategy
  • Continued orders strength
  • Talented, engaged employees

Challenges Ahead

  • COVID-19 pandemic and global efforts to respond to it continue to evolve
  • Anticipation of continued supply chain constraints
  • Estimated impact of pending Plex acquisition of $(0.15)
  • Lower fair-value gains in fiscal 2021 versus fiscal 2020 due to PTC adjustments
  • Higher effective tax rate in the third quarter of fiscal 2021

Revenue & Expenses

Visualization of income flow from segment revenue to net income