Rockwell Automation Cuts FY22 Earnings View Below Market Estimates - Update

(RTTNews) - While reporting sharply lower second-quarter earnings and higher sales on Tuesday, Rockwell Automation, Inc. (ROK) trimmed its forecast for fiscal 2022 earnings and sales growth view.

In pre-market activity on the NYSE, Rockwell Automation shares were losing around 8.4 percent to trade at $229.

The company said the guidance reflects its strong demand and record backlog along with its latest view of supply chain constraints. However, the global supply chain remains volatile with new pressures from COVID-19 related shutdowns in China and war in Ukraine that are difficult to quantify.

For the year, the company now expects earnings per share between $7.60 and $8.20, lower than previous estimate of $10.01 to $10.61. Adjusted earnings per share are now expected to be in the range of $9.20 - $9.80, down from earlier expected $10.50 - $11.10.

On average, 26 analysts polled by Thomson Reuters expect earnings of $10.66 per share for the year. Analysts' estimates typically exclude special items.

Further, the company now expects reported sales growth of 11 percent to 15 percent, down from previous growth view of 16 percent to 19 percent. Organic sales growth is now expected to be 10 percent to 14 percent, compared to previously expected sales growth of 14 percent to 17 percent.