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Investing.com -- Rockwell Automation, Inc. (NYSE:ROK) reported third-quarter fiscal 2025 earnings on Wednesday that exceeded analyst expectations, with adjusted earnings per share of $2.82 beating the consensus estimate of $2.67.
Revenue reached $2.14 billion, surpassing analysts’ projections of $2.07 billion and marking a 5% increase from the same period last year.
The industrial automation company saw organic sales growth of over 4% YoY, with currency translation contributing less than 1% to the overall sales increase.
Rockwell’s shares edged up 0.3% following the announcement, as investors responded positively to the earnings beat and improved outlook.
"Q3 marked another quarter of strong execution and significant progress toward our long-term margin expansion goals," said Blake Moret, Chairman and CEO.
"We returned to year-over-year sales growth with a broad set of customer wins in the quarter, including significant brownfield and greenfield opportunities."
The company’s adjusted EPS of $2.82 represented a 4% increase from $2.71 in the third quarter of fiscal 2024.
Total (EPA:TTEF) segment operating margin improved to 21.2% from 20.8% a year ago, driven by productivity gains, price realization, and favorable mix, though partially offset by higher compensation costs and unfavorable currency effects.
Rockwell’s Software (ETR:SOWGn) & Control segment was particularly strong, with sales increasing 23% to $629 million and segment operating margin jumping to 31.6% from 23.6% a year ago.
Meanwhile, the Intelligent Devices segment saw a modest 1% sales increase, while Lifecycle Services experienced a 6% sales decline.
The company has updated its fiscal 2025 guidance, now projecting organic sales growth between -2% and 1%, and adjusted EPS of $9.80 to $10.20, compared to the previous range of $9.20 to $10.20.
The consensus estimate stands at $9.87.
Total annual recurring revenue grew 7% compared to the same period last year, and the company’s book-to-bill ratio was approximately 1.0, consistent with normal historical ranges.
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