Rockwell Automation to Post Q4 Earnings: What Should You Expect?

Rockwell Automation Inc. ROK is expected to witness declines in revenues and earnings when it reports fourth-quarter fiscal 2024 results on Nov. 7, before the opening bell. The Zacks Consensus Estimate for earnings has been unchanged over the past 60 days at $2.40 per share. The consensus mark implies a 34.1% plunge from the year-ago actual. The consensus estimate for revenues is pegged at $2.07 billion, indicating a 19.4% year-over-year decline. Image Source: Zacks Investment Research Find the latest EPS estimates and surprises on Zacks Earnings Calendar.ROK’s Earnings Surprise HistoryRockwell Automation’s earnings surpassed estimates thrice in the trailing four quarters and missed on the remaining occasion, the average surprise being 6.7%. Image Source: Zacks Investment Research What the Zacks Model Indicates for Rockwell AutomationOur proven model does not conclusively predict an earnings beat for Rockwell Automation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.Earnings ESP: Rockwell Automation has an Earnings ESP of -1.13%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank of 3.Factors Likely to Have Shaped ROK’s Q4 PerformanceThe Institute for Supply Management’s manufacturing index has been below 50% in the July-September quarter, averaging 47.1%. Demand was subdued as companies refrained from making capital investments. This was evident from the New Orders Index, which was also below 50% through July-September.In the fiscal third quarter , the company reported negative 8.4% organic growth. Rockwell Automation noted that there had been a buildup of excess inventory among customers, particularly machine builders. It stated that it did not expect a significant acceleration in order levels this fiscal year. The impacts of the decrease in order levels are likely to get reflected in Rockwell Automation’s fiscal fourth-quarter top-line results. This downside is expected to have been somewhat offset by favorable pricing. Our model predicts an organic sales decline of 21.7%. This will be offset by a 2.4% contribution from acquisitions.ROK has been experiencing increased logistics prices due to higher energy costs and constrained air freight lanes. Also, increased spending on talent and growth, unfavorable mix, and currency are expected to have impacted margins.Rockwell Automation’s Q4 Segment ExpectationsWe expect the Intelligent Devices segment’s fiscal fourth-quarter revenues to decline 18% year over year to $960 million. Our prediction for the segment’s operating profit is $185 million, indicating a year-over-year decrease of 19.3%.Our model predicts the Software &  Control segment’s sales at $512 million, suggesting a 37.7% decline from the prior year’s actual. The segment’s operating profit, pinned at $121 million, indicates a 55.9% plunge from the year-ago quarter’s reported figure.We expect the Lifecycle Services segment’s sales to be $584 million, implying 2.2% growth from the prior-year period’s actual. The estimate for the segment’s operating profit is $102 million. The figure indicates a 114.5% surge from the year-ago quarter’s reported figure.ROK’s Price PerformanceIn the past year, Rockwell Automation’s shares have gained 4.3% against the industry’s 5.5% decline. Image Source: Zacks Investment Research Stocks to ConsiderHere are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.Osisko Gold Royalties OR, which currently carries a Zacks Rank of 2, is expected to report third-quarter 2024 results later this month. OR has an Earnings ESP of +1.59%. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for OR’s earnings for the quarter is pegged at 11 cents per share, indicating 22% year-over-year growth. It has a trailing four-quarter average earnings surprise of 4.1%.Tenaris S.A. TS has an Earnings ESP of +10.22% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2024 results on Nov. 6.The Zacks Consensus Estimate for TS’s quarterly earnings is pegged at 63 cents per share, suggesting a 30.8% year-over-year decline. It has a trailing four-quarter average earnings surprise of 11.6%.Woodward, Inc. WWD has an Earnings ESP of +1.86% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2024 results on Nov. 25.The Zacks Consensus Estimate for WWD’s earnings for the quarter is pegged at $1.22 per share, implying an 8.2% year-over-year dip. It has a trailing four-quarter average earnings surprise of 18.5%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rockwell Automation, Inc. (ROK): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report Tenaris S.A. (TS): Free Stock Analysis Report Osisko Gold Royalties Ltd (OR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks