Rockwell Automation Inc (NYSE: ROK) shares are trading lower on Tuesday morning after it reported third-quarter FY23 results below Street expectations.
ROK reported sales growth of 13.7% year-on-year to $2.239 billion, missing the consensus of $2.330 billion. Organic sales increased 13.2%.
Adjusted EPS of $3.01 missed the analyst consensus of $3.17.
"In May, we made a change in our U.S. distribution center that added capacity to support higher revenue in fiscal Q4 and beyond. This transition impacted the timing of shipments within the second half of the fiscal year, and our full-year organic sales expectations remain unchanged," said Blake Moret, Chairman and CEO.
Also Read: This Analyst Raises Rockwell's Price Target On Demand Resiliency, Strong Incrementals
Segment Details: Intelligent Devices sales increased 10.2% to $968 million, Software & Control rose 23.7% to $751 million, and Lifecycle Services climbed 7.5% to $520 million.
Total segment operating earnings were $473 million in the third quarter of fiscal 2023, up 15.6% Y/Y. Total segment operating margin was 21.1% compared to 20.8% a year ago.
The company held $443.5 million in cash and equivalents as of June 30, 2023.
Outlook: Rockwell narrowed its FY23 Adjusted EPS outlook from $11.50 - $12.20 to $11.70 - $12.10 versus an estimate of $12.01.
The company also tightened its FY23 reported sales growth outlook from 12.5%-16.5% to 14.0%-16.0%.
Price Action: ROK shares are trading lower by 9.08% at $305.74 on the last check Tuesday.
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