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Sep 30, 2021

Rockwell Automation Q4 2021 Earnings Report

Rockwell Automation reported Q4 2021 earnings with increased sales and adjusted EPS, but a decrease in net income due to fair-value adjustments.

Key Takeaways

Rockwell Automation reported a 15.1% increase in fourth-quarter sales, reaching $1,807.8 million. Adjusted EPS rose by 20.7% to $2.33, while diluted EPS was $0.67. The company introduced fiscal year 2022 guidance, projecting sales growth of 16% - 19% and adjusted EPS of $10.50 - $11.10.

Record quarterly orders of $2.2 billion, up over 40% year over year.

Fourth quarter reported sales up 15.1% year over year; organic sales up 12.6% year over year.

Fourth quarter diluted EPS $0.67; Adjusted EPS $2.33.

Organic ARR grew 18%; total ARR now over 8% of revenue.

Total Revenue
$1.81B
Previous year: $1.57B
+15.2%
EPS
$2.33
Previous year: $1.87
+24.6%
Pre-Tax Margin
0.2%
Previous year: 19.1%
-99.0%
Segment Operating Margin
17.9%
Previous year: 20.2%
-11.4%
Effective Tax Rate
-1,634.9%
Previous year: 12%
-13724.2%
Gross Profit
$719M
Previous year: $639M
+12.5%
Cash and Equivalents
$662M
Previous year: $705M
-6.0%
Free Cash Flow
$160M
Previous year: $304M
-47.2%
Total Assets
$10.7B
Previous year: $7.26B
+47.3%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation introduced fiscal 2022 guidance, projecting reported sales growth of 16% - 19% ($8.2 billion at mid-point) and organic sales growth of 14% - 17%. Diluted EPS is expected to be $9.91 - $10.51, and Adjusted EPS is projected at $10.50 - $11.10.

Positive Outlook

  • Strong demand
  • Record backlog entering into fiscal year 2022
  • Sales expected to exceed $8B as component supply improves
  • Major new product introductions
  • Recent acquisitions will fuel continued orders growth globally across all industry segments

Challenges Ahead

  • Supply chain challenges remain dynamic
  • Projections assume gradual improvement over the course of the year
  • Diluted EPS $9.91 - $10.51
  • Adjusted EPS $10.50 - $11.10
  • Effective tax rate ~ 16.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income