Rockwell Automation's (NYSE: ROK) excellent fiscal fourth-quarter earnings report caught investors by surprise, and the stock shot more than 10% higher on the day it was released. Given that Rockwell is one of the most cyclical stocks on the market, there's obviously a lot of "read across" to other stocks and sectors. Let's take a look at why the results were so good, and what those things mean to other companies in its sector.
Back in July during the fiscal third-quarter earnings presentation, management had predicted adjusted EPS in the range of $8.50 to $8.70 for the fiscal year that ended Sept. 30, so investors were naturally pleased to see the number come in at $8.67, toward the top of that range. However, the real standout number from the quarter was the 1.4% increase in organic sales -- management had previously predicted a decline of between 3% and 3.5%.
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