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Jun 30, 2022

Rockwell Automation Q3 2022 Earnings Report

Rockwell Automation reported a strong Q3 2022, with adjusted EPS growing over 15% year over year, driven by continued order strength and improved supply chain.

Key Takeaways

Rockwell Automation reported a 6.5% increase in sales to $1,969 million in Q3 2022. Diluted EPS was $2.55, and Adjusted EPS was $2.66, a 15% increase year-over-year. The company has updated its fiscal year 2022 sales growth guidance to 10.5% - 12.5% and Adjusted EPS guidance to $9.30 - $9.70.

Total orders were up 17% year-over-year.

Reported sales increased by 6.5% year-over-year, with organic sales up 7.1%.

Total ARR grew by 59%, while organic ARR increased by 18%.

Diluted EPS was $2.55, and Adjusted EPS was $2.66, representing increases of 10% and 15% year-over-year, respectively.

Total Revenue
$1.97B
Previous year: $1.85B
+6.5%
EPS
$2.66
Previous year: $2.31
+15.2%
Pre-Tax Margin
17.5%
Previous year: 17%
+2.9%
Segment Operating Margin
20.8%
Previous year: 19.9%
+4.5%
Return on Invested Capital
12.8%
Previous year: 40.4%
-68.3%
Gross Profit
$802M
Previous year: $764M
+5.0%
Cash and Equivalents
$483M
Previous year: $914M
-47.2%
Free Cash Flow
$327M
Previous year: $437M
-25.2%
Total Assets
$10.8B
Previous year: $8.57B
+26.0%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation expects strong double-digit year-over-year and sequential sales growth in Q4. The midpoint of fiscal year organic growth range is reduced to reflect ongoing supply chain volatility.

Positive Outlook

  • Strong demand
  • Record backlog
  • Executing very well
  • Teams are working together with partners
  • Teams are working together with suppliers and customers

Challenges Ahead

  • Ongoing supply chain volatility
  • Macroeconomic factors, including inflation
  • Global and regional business conditions
  • Commodity prices
  • Currency exchange rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income