Rockwell Automation Q2 Results Miss Estimates, Backs 2014 Outlook

(RTTNews) - Industrial automation solutions provider Rockwell Automation, Inc. (ROK) reported Tuesday a profit for the second quarter that grew from last year, mainly reflecting improved operating margins and sales growth. However, both adjusted earning per share and quarterly sales missed analysts' expectations. The company also reaffirmed its earnings and sales guidance for the full-year 2014.

"Sales were strong in the quarter with 7 percent organic growth. I was particularly pleased to see growth in all regions for the first time in over a year. Adjusted Earnings per Share in the first half of the fiscal year grew a healthy 10 percent in spite of a significant headwind from a higher tax rate," Chairman and CEO Keith Nosbusch said in a statement.

The Milwaukee, Wisconsin-based company reported net income of $180.3 million or $1.28 per share for the second quarter, higher than $175.9 million or $1.24 per share in the prior-year quarter.

Excluded certain items, adjusted earnings for the quarter was $189.3 million or $1.35 per share, compared to $188.5 million or $1.33 per share in the year-ago quarter, reflecting the adverse impact of a higher tax rate.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter grew 5 percent to $1.60 billion from $1.52 billion in the same quarter last year, but missed seventeen Wall Street analysts' consensus estimate of $1.61 billion.

The company said its organic sales increased 7 percent, and currency translation reduced its sales by 2 percentage points.

Segment-wise, architecture & software sales grew 7 percent from last year to $686.8 million, and the revenue growth was 3 percent in control products & solutions to $913.7 million from a year ago.

In the quarter, total segment operating earnings increased 6 percent to $302.1 million from prior year's $292.1 million, and operating margin improved 20 basis points to 18.9 percent from last year.

Looking ahead to fiscal 2014, the company continues to expect adjusted earnings in a range of $6.00 to $6.35 per share, on projected annual sales of about $6.6 billion. Street is currently looking for full-year 2014 earnings of $6.27 per share on annual revenues of $6.69 billion.

In Tuesday's regular trading session, ROK is currently trading at $119.33, up $5.19 or 4.17% on a volume of 62,154 shares.