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Sep 30, 2020

Rockwell Automation Q4 2020 Earnings Report

Rockwell Automation reported Q4 2020 results with sales decreasing year-over-year but increasing sequentially, and diluted EPS of $2.25.

Key Takeaways

Rockwell Automation reported a decrease in fourth-quarter sales by 9.3% year-over-year, but sales were up 12.6% sequentially. The diluted EPS was $2.25, and the adjusted EPS was $1.87. The company introduced fiscal 2021 EPS guidance with diluted EPS expected to be between $8.07 and $8.47, and adjusted EPS between $8.45 and $8.85.

Fourth quarter reported sales decreased 9.3% year-over-year, with organic sales down 12.1% year-over-year.

Fourth quarter reported sales increased 12.6% sequentially; organic sales increased 9.9% sequentially.

Fourth quarter diluted EPS was $2.25, and adjusted EPS was $1.87.

Introduced fiscal 2021 EPS guidance: Diluted EPS $8.07 - $8.47; Adjusted EPS $8.45 - $8.85 (new definition).

Total Revenue
$1.57B
Previous year: $1.73B
-9.2%
EPS
$1.87
Previous year: $2.01
-7.0%
Pre-Tax Margin
19.1%
Previous year: 3.3%
+478.8%
Segment Operating Margin
20.2%
Previous year: 20.2%
+0.0%
Effective Tax Rate
12%
Gross Profit
$639M
Previous year: $723M
-11.6%
Cash and Equivalents
$705M
Previous year: $1.02B
-30.8%
Free Cash Flow
$304M
Previous year: $451M
-32.6%
Total Assets
$7.26B
Previous year: $6.11B
+18.8%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation provided fiscal year 2021 guidance, anticipating continued recovery and growth.

Positive Outlook

  • Reported sales growth 6% - 9%
  • Organic sales growth 3.5% - 6.5%
  • Inorganic sales growth 1.0% - 1.5%
  • Currency translation ~ 1%
  • Diluted EPS $8.07 - $8.47

Challenges Ahead

  • The COVID-19 pandemic and global efforts to respond to it continue to evolve.
  • Projections assume that a gradual recovery continues, with no increase in pandemic-related facility closures or disruptions to the supply chain.
  • Fiscal 2021 guidance excludes estimates of adjustments on a forward-looking basis due to variability, complexity, and limited visibility of these items.
  • Guidance is based on Adjusted Income attributable to Rockwell, which includes an adjustment for Schlumberger's non-controlling interest in Sensia.
  • There is no specific negative guidance mentioned in the provided text.