Rockwell Automation Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Rockwell Automation (NYSE:ROK) will unveil its latest earnings on Wednesday, July 25, 2012. Rockwell Automation provides industrial automation power, control and information solutions to customers in the manufacturing sector.

Rockwell Automation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.31 per share, a rise of 7.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.34. Between one and three months ago, the average estimate moved down. It also has dropped from $1.33 during the last month. For the year, analysts are projecting profit of $5.20 per share, a rise of 8.6% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net income of $1.16 per share versus a mean estimate of profit of $1.27 per share. In the first quarter, the company beat estimates by 6 cents.

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Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price fell $11.50 (-14.9%), from $77.40 to $65.90. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 18, 2012, when shares rose for eight straight days, increasing 13.2% (+$9.54) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 19.3% (-$16.15) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 5.3% in revenue from the year-earlier quarter to $1.6 billion.

Analyst Ratings: There are mostly holds on the stock with six of 11 analysts surveyed giving that rating.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 53.7% in the fourth quarter of the last fiscal year and 22.1% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 19.6% in the third quarter of the last fiscal year, 21.9% in the fourth quarter of the last fiscal year and 7.9% in the first quarter before increasing again in the second quarter.

A Look Back: In the second quarter, profit rose 0.8% to $167.8 million ($1.16 a share) from $166.4 million ($1.14 a share) the year earlier, but fell short analyst expectations. Revenue rose 6.6% to $1.56 billion from $1.46 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.21 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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