Rockwell Automation Inc. ROK has reported adjusted earnings per share (EPS) of $2.45 in second-quarter fiscal 2025 (ended March 31, 2025), surpassing the Zacks Consensus Estimate of $2.09. The bottom line declined 2% year over year due to lower sales volume.

Including one-time items, earnings were $2.22 per share compared with $2.31 in the year-ago quarter.

Rockwell Automation, Inc. Price, Consensus and EPS SurpriseRockwell Automation, Inc. Price, Consensus and EPS Surprise

Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote

Total sales were $2.00 billion, down 5.9% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1.96 billion. Organic sales moved down 4%. We projected a 5.7% decline in organic sales. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

ROK’s Margin Performance in Q2

The cost of sales declined 7.9% year over year to $1.19 billion. The gross profit fell 2.8% to $810 million. However, the gross margin increased to 40.5% from the prior-year quarter’s 39.2%. Selling, general and administrative expenses moved down 6.4% year over year to $469 million.

Consolidated segment operating income totaled $408 million, up 1% from the prior-year quarter. The total segment operating margin was 20.4% in the fiscal second quarter, higher than the prior-year period’s 19%. Lower sales volume was partially offset by benefits from cost reduction and positive pricing.

Rockwell Automation’s Q2 Segmental Results

Intelligent Devices: Net sales amounted to $896 million, down 8% year over year. The reported figure beat our estimate of $837 million.

The segment’s operating earnings totaled $159 million compared with the year-earlier quarter’s $161 million. We predicted the segment’s operating earnings to be $142 million. The segment’s operating margin increased to 17.7% from the year-ago quarter’s 16.5%. 

Software & Control: Net sales dipped 1% year over year to $568 million. Reported sales beat our estimate of $535 million.

The segment’s operating earnings increased 17.1% year over year to $171 million. We predicted segmental operating earnings of $118 million. The segment’s operating margin was 30.1% compared with 25.7% in the year-earlier quarter, reflecting the impacts of cost reduction, partially offset by higher compensation.

Lifecycle Services: Net sales for the segment were $537 million, down 8% year over year. We projected the segment’s sales to be $595 million.

The segment’s operating earnings totaled $78 million compared with the year-ago quarter’s $97 million. Our estimate for the segment’s operating earnings was $95 million. The segment’s operating margin was 14.5% compared with the year-ago quarter’s 16.6%. The improvements from cost reduction actions and strong project execution were offset by lower sales volume.

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ROK’s Cash Position & Balance Sheet Updates

At the end of the second quarter of fiscal 2025, cash and cash equivalents were approximately $450 million compared with $471 million as of the end of fiscal 2024. Cash flow from operations was $199 million compared with the year-ago quarter’s $120 million. Return on invested capital was 14.2% as of March 31, 2025.

Rockwell Automation’s long-term debt was $2.57 billion at the end of the quarter compared with $2.56 billion at the fiscal 2024 end.

ROK repurchased 0.5 million shares for $129 million. As of the end of the quarter, $1.1 billion was available under the existing share-repurchase authorization.

Rockwell Automation’s FY25 Guidance

The company updated its reported sales view to a decline of 4.5% to growth of 1.5%. It had earlier projected a drop of 5.5% to 0.5% growth in sales. The revised guidance includes a negative foreign currency impact of 0.5%. Organic sales growth are expected between a decline of 4% to an increase of 2%.

Rockwell Automation increased its adjusted EPS guidance to $9.20-$10.20 for fiscal 2025. It earlier expected an adjusted EPS of $8.60-$9.80.

ROK Stock’s Price Performance

In the past year, Rockwell Automation shares have lost 5.3% compared with the industry’s 52.7% decline.Zacks Investment Research

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Rockwell Automation’s Zacks Rank

Rockwell Automation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Electronics - Miscellaneous Product Stocks

KLA Corporation KLAC reported third-quarter fiscal 2025 non-GAAP earnings of $8.41 per share, beating the Zacks Consensus Estimate by 4.34%. The figure soared 59.9% year over year.

KLA Corporation’s sales increased 29.8% year over year to $3.06 billion, surpassing the Zacks Consensus Estimate of $3.01 billion by 1.92%.

The Timken Company TKR posted an adjusted EPS of $1.40 in first-quarter 2025, missing the Zacks Consensus Estimate of $1.43 per share. The bottom line declined 21% year over year from the EPS of $1.77 in the year-ago quarter.

Timken’s total sales were $1.14 billion, down 4.2% from sales of $1.19 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.12 billion.

Teradyne TER registered first-quarter 2025 non-GAAP earnings of 75 cents per share, which comfortably beat the Zacks Consensus Estimate by 22.95% and jumped 47.1% year over year.

Teradyne’s sales of $686 million beat the Zacks Consensus Estimate of $684 million and increased 14.3% year over year. The rise was driven by a strong performance in the Semiconductor Test division.

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