- Rockwell Automation Inc ROK reported fourth-quarter FY21 sales growth of 15.1% year-over-year to $1.81 billion and 12.6% on an organic basis, missing the consensus of $1.91 billion.
- Sales by segments: Intelligent Devices $857.1 million (+16.7% Y/Y), Software & Control $494.1 million (+18.8% Y/Y) and Lifecycle Services $456.6 million (+8.8% Y/Y).
- Adjusted EPS improved 20.7% Y/Y to $2.33, beating the consensus of $2.17.
- The gross margin contracted by 90 bps to 39.8%. The total segment operating margin was 17.9% versus 20.2% a year ago. The decrease was due to higher planned spend, the reinstatement of incentive compensation, and the reversal of temporary pay actions, partially offset by higher sales.
- Cash flow provided by operating activities in Q4 was $204.1 million, compared to $325.8 million in 4Q20. Free cash flow was $160.4 million compared to $303.8 million last year.
- The company's Organic ARR grew 18%; the total ARR is now over 8% of revenue.
- FY22 Outlook: Rockwell Automation expects sales growth of 16% - 19% ($8.2 billion at mid-point) and Organic sales growth of 14% - 17%.
- It expects Adjusted EPS of $10.50 - $11.10 vs. consensus of $10.24.
- "2022 will be a breakout year for Rockwell, with sales expected to exceed $8B as component supply improves. Major new product introductions and recent acquisitions will fuel continued orders growth globally across all industry segments," commented Blake Moret, Chairman and CEO.
- Price Action: ROK shares are trading higher by 6.12% at $339.48 on the check Tuesday.
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