Rockwell Automation Cuts FY24 Outlook Below Market After Weak Q2 Results; Stock Down In Pre-market

(RTTNews) - Rockwell Automation Inc. (ROK), while reporting weak profit and revenues in its second quarter, on Tuesday trimmed its forecast for fiscal 2024.

In pre-market activity on the NYSE, Rockwell shares were losing around 5.6 percent to trade at $262.

The company noted that there is more excess inventory at its customers, particularly machine builders, than originally expected. As a result, the company is not yet seeing the accelerated order ramp this fiscal year.

For fiscal 2024, the company now expects earnings of $8.80 to $9.80 per share, lower than previously expected $11.24 to $12.74 per share.

Adjusted earnings per share are now projected to be $10.00 to $11.00, compared to previous outlook of $12.00 to $13.50 per share.

Analysts on average expect the company to earn $11.92 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Reported sales are now expected to be down 4 percent to 6 percent, while previously the company expected a growth of 0.5 percent to 6.5 percent.

Organic sales would be down 6 percent to 8 percent, while the company earlier expected a decline of 2 percent to a growth of 4 percent.

In its second quarter, profit decreased from last year but beat the Street estimates.

The company's earnings totaled $266.2 million, or $2.31 per share. This compares with $300.3 million, or $2.59 per share, in last year's second quarter.

Adjusted earnings were $288.0 million or $2.50 per share for the period. Analysts had expected the company to earn $2.16 per share.

The company's revenue for the quarter fell 6.6 percent to $2.13 billion from $2.28 billion last year.

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