ABB - Fanuc - Shares Sliding As Orders Rebounding

• Fanuc posted strong revenue, profit, and order growth in its first fiscal quarter, though record orders were offset by a slight miss and weaker guidance with operating income.
• Demand is strong across the board, with Chinese customers ordering more machine tool controllers and metalworking tools while global auto OEMs are ordering more robots to support model launches.
• I'm less concerned about peaking orders than the appearance of Fanuc resting on its laurels; the company seems behind the curve in robotics (cobots) and Chinese automation competition is rising.
• Fanuc shares have been weak despite a strong recovery in orders; long-term competitiveness is a threat, but Fanuc shares currently look cheaper than they usually get, and automation demand should remain strong for years.

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