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Rockwell Automation Inc. (ROK) is scheduled to report fourth-quarter fiscal 2025 results on Nov. 6, before the opening bell.
The Zacks Consensus Estimate for Rockwell Automation’s earnings has moved 1% north in the past 60 days to $2.94 per share. The consensus mark implies 19% growth from the year-ago actual. The consensus estimate for sales is pegged at $2.21 billion, indicating an 8.7% year-over-year rise.
Rockwell Automation’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 9.7%.
Our model predicts an earnings beat for ROK 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. That is precisely the case here.
Earnings ESP: Rockwell Automation has an Earnings ESP of +1.51%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Rockwell Automation reported negative 7.6% organic growth in first-quarter fiscal 2025 and negative 4% in the second quarter of fiscal 2025 due to lower sales volumes across all the company’s segments. Organic growth improved to 4% in the fiscal third quarter, driven by growth in the Software & Control, and Intelligent Devices segments.
Rockwell Automation will continue to benefit from price increase actions to mitigate the impacts of inflationary pressures, which are likely to improve margins. ROK plans to mitigate tariff costs through pricing actions and supply-chain optimization. These tailwinds are likely to have aided growth in the to-be-reported quarter.
Our model, thus, predicts an organic sales improvement of 5.9% for the quarter.
However, the manufacturing sector remained in contraction through the quarter, as reflected in the Institute for Supply Management’s manufacturing index with a 48% reading in July, 48.7% in August and 49.1% in September. The New Orders Index also remained below 50% throughout this period.
Customers have been pulling in orders due to anxiety about continued tariffs and pricing pressures. The impacts of this trend are also likely to get reflected in ROK’s order levels in the quarter under review.
ROK has faced margin headwinds in recent quarters, including higher logistics prices due to increased energy prices and constrained air freight lanes. Additionally, increased spending on talent and growth, an unfavorable mix, and currency are expected to have impacted its margins. The combination of lower sales and elevated costs is anticipated to have led to a decline in its earnings in the quarter.
We expect the Intelligent Devices segment’s fiscal fourth-quarter sales to improve 3.7% year over year to $981 million. Our prediction for the segment’s operating profit is $197.5 million, indicating a year-over-year rise of 1.1%.
Our model predicts sales of $596 million for the Software & Control segment, indicating 18.8% growth from the prior year’s actual. The segment’s operating profit is pinned at $135 million, which implies a 20.3% plunge from the year-ago quarter’s reported figure.
We expect the Lifecycle Services segment’s sales to be $620 million, indicating 5.5% growth from the prior-year period’s actual. The estimate for the segment’s operating profit is pegged at $138 million, indicating a 35.1% increase from the year-ago quarter’s reported figure.
In the past year, Rockwell Automation’s shares have gained 40.1% compared with the industry’s 32.4% rally.
Here are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.
Lyft, Inc. (LYFT), expected to release earnings on Nov. 5, currently has an Earnings ESP of +5.50% and a Zacks Rank of 2.
The consensus estimate for Lyft’s earnings for the third quarter of 2025 is pegged at 30 cents per share, indicating year-over-year growth of 3.5%. LYFT has a trailing four-quarter average surprise of 15.8%.
BILL Holdings, Inc. (BILL), slated to release first-quarter fiscal 2026 results on Nov. 6, has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for BILL Holdings’ first-quarter 2026 earnings is pegged at 51 cents per share, suggesting a year-over-year dip of 19.1%. BILL has a trailing four-quarter average surprise of 28%.
Allient Inc. (ALNT) is scheduled to release third-quarter 2025 results on Nov. 5. It has an Earnings ESP of +8.00% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Allient’s third-quarter 2025 earnings is pegged at 50 cents per share, suggesting a year-over-year rise of 61.3%. Allient has a trailing four-quarter average surprise of 31.3%.
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This article originally published on Zacks Investment Research (zacks.com).
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