SBGSF - Rockwell Automation: Disappointing Q1 Earnings Suggest Tough Year Ahead

2024-02-01 11:01:23 ET

Summary

• This is a revisit of Rockwell Automation, Inc. after it missed both revenue and EPS estimates in its fiscal Q1. The stock was down nearly 18% within a day.
• The company continues to disappoint investors, with the expected revenue and EPS growth not materializing.
• With the stock drop, I think short-term headwinds are mostly priced in, and the stock trades at similar multiples to its peers.
• Therefore, I revise my Rockwell Automation, Inc. rating as "Hold".

Introduction

Rockwell Automation, Inc. ( ROK ) continues to disappoint its investors.

The company just released its fiscal Q1 2024 earnings , and the results are not what the market expected at all. It missed both revenue and EPS consensus. While sales were up 3.5% year-over-year, organic sales were up only 1%....

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