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Sep 30, 2022

Rockwell Automation Q4 2022 Earnings Report

Rockwell Automation reported strong Q4 2022 results, with double-digit growth in organic sales and earnings, driven by compelling customer value amidst supply chain challenges and inflation.

Key Takeaways

Rockwell Automation reported a strong finish to fiscal year 2022, with Q4 organic sales up 20.5% year-over-year and diluted EPS at $2.91, up over 300% year-over-year. Adjusted EPS was $3.04, a 30% increase year-over-year. The company introduced fiscal 2023 guidance, projecting continued growth.

Fourth quarter reported sales increased by 17.6% year-over-year, with organic sales up 20.5%.

Diluted EPS for the fourth quarter was $2.91, up over 300% year-over-year; Adjusted EPS was $3.04, up 30% year-over-year.

Full year orders exceeded $10 billion, representing a growth of over 20% year-over-year.

ARR grew 14% year-over-year, with total ARR exceeding 8% of revenue.

Total Revenue
$2.13B
Previous year: $1.81B
+17.6%
EPS
$3.04
Previous year: $2.33
+30.5%
Pre-Tax Margin
19.1%
Previous year: 0.2%
+9450.0%
Segment Operating Margin
23.3%
Previous year: 17.9%
+30.2%
Effective Tax Rate
17.2%
Previous year: -1,634.9%
-101.1%
Gross Profit
$886M
Previous year: $719M
+23.2%
Cash and Equivalents
$491M
Previous year: $662M
-25.9%
Free Cash Flow
$359M
Previous year: $160M
+123.8%
Total Assets
$10.8B
Previous year: $10.7B
+0.5%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation anticipates continued growth in fiscal year 2023, with reported sales growth of 7.5% - 11.5% and diluted EPS of $9.54 - $10.34. The guidance reflects record backlog and assumes continued supply chain stabilization.

Positive Outlook

  • Record backlog.
  • Underlying customer demand.
  • More resilient operating model.
  • Reported sales growth of 7.5% - 11.5%.
  • Organic sales growth of 9.0% - 13.0%.

Challenges Ahead

  • Assumes continued supply chain stabilization.
  • Currency translation impact of approximately (2.5)%.
  • Inorganic sales growth of approximately 1.0%.
  • Potential for volatility in quarterly earnings due to investment in PTC Inc.
  • Risks related to security vulnerabilities and breaches of hardware and software products.

Revenue & Expenses

Visualization of income flow from segment revenue to net income