Industrials automation company Rockwell (NYSE:ROK) will be reporting results tomorrow before the bell. Here's what to look for.
Rockwell Automation beat analysts' revenue expectations by 3.5% last quarter, reporting revenues of $2.13 billion, down 6.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
Is Rockwell Automation a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Rockwell Automation's revenue to decline 9.1% year on year to $2.03 billion, a reversal from the 13.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.08 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rockwell Automation has missed Wall Street's revenue estimates three times over the last two years.
Looking at Rockwell Automation's peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMETEK delivered year-on-year revenue growth of 5.4%, missing analysts' expectations by 2.6%, and Vontier reported a revenue decline of 8.9%, falling short of estimates by 6.7%. AMETEK traded down 11.9% following the results while Vontier was also down 15.9%.
Read our full analysis of AMETEK's results here and Vontier's results here.
Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Rockwell Automation is down 5.3% during the same time and is heading into earnings with an average analyst price target of $285.5 (compared to the current share price of $251).
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