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Sep 30, 2023

Rockwell Automation Q4 2023 Earnings Report

Rockwell Automation reported strong Q4 2023 results, with sales and earnings growth and introduced fiscal 2024 guidance.

Key Takeaways

Rockwell Automation reported a strong fourth quarter with a 20.5% increase in sales and a 19.7% increase in adjusted EPS. The company's performance was driven by strong execution and improved lead times, with double-digit sales growth in all regions and business segments. Fiscal 2024 guidance was introduced, projecting continued growth.

Fourth quarter reported sales up 20.5% year over year, with organic sales up 17.7%.

Fourth quarter diluted EPS of $2.61, down (10)% year over year; adjusted EPS of $3.64, up 20% year over year.

Full year reported sales up 16.7% year over year; organic sales up 16.9% year over year.

Total ARR grew 16% year over year.

Total Revenue
$2.56B
Previous year: $2.13B
+20.6%
EPS
$3.64
Previous year: $3.04
+19.7%
Pre-Tax Margin
12.4%
Previous year: 19.1%
-35.1%
Segment Operating Margin
22.3%
Previous year: 23.3%
-4.3%
Effective Tax Rate
35.2%
Previous year: 17.2%
+104.7%
Gross Profit
$1.06B
Previous year: $886M
+19.1%
Cash and Equivalents
$1.07B
Previous year: $491M
+118.4%
Free Cash Flow
$776M
Previous year: $359M
+116.2%
Total Assets
$11.3B
Previous year: $10.8B
+5.1%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation provided fiscal year 2024 guidance, including reported sales growth of 0.5% - 6.5%, organic sales growth of (2.0)% - 4.0%, and diluted EPS of $11.49 - $12.99; Adjusted EPS of $12.00 - $13.50.

Positive Outlook

  • Confident in Rockwell’s ability to grow share
  • Helping customers scale new production facilities
  • Addressing workforce challenges
  • Strengthening overall business resilience with new technologies and services
  • Streamlined organization and strong focus on productivity enable us to continue to grow earnings

Challenges Ahead

  • Dynamic macro environment
  • Order normalization
  • Sales Growth Guidance: Reported sales growth of 0.5% - 6.5%
  • Sales Growth Guidance: Organic sales growth of (2.0)% - 4.0%
  • Diluted EPS Guidance: $11.49 - $12.99

Revenue & Expenses

Visualization of income flow from segment revenue to net income