ROK - Here's Why Rockwell Automation Stock Fell This Week
2024-02-02 12:00:06 ET
Shares in Rockwell Automation (NYSE: ROK) declined by 13.2% this week to Friday, according to data provided by S&P Global Market Intelligence . The move comes after a disappointing set of fiscal first-quarter results. In a familiar refrain among industrial stocks this earnings season, Rockwell's management promised its second half would be better than its first half.
As previously discussed , Rockwell is going through an unusual period right now. The supply chain difficulties (which resulted in extended product lead times) in recent years led Rockwell's distributors to build inventory and pull forward orders in order to ensure they had products. In addition, the economic recovery following the pandemic lockdowns led to strong end-market growth.
These conditions led to a ballooning backlog at Rockwell Automation and strong order growth. However, declining lead times (meaning distributors can receive products quicker) and slowing end demand in 2023 slowed order growth, and Rockwell's backlog declined more than expected.
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Here's Why Rockwell Automation Stock Fell This Week