Rockwell Automation Inc (NYSE:ROK) reported fourth-quarter (Q4) FY23 sales growth of 20.5% year-over-year to $2.56 billion, +17.7% Y/Y on an organic basis, beating the consensus of $2.43 billion.
Adjusted EPS was $3.64 (+20% Y/Y), above the consensus of $3.45.
Gross profit improved by 19.1% Y/Y to $1.06 billion, and margin contracted 50 bps to 41.2%.
“Our strong execution and continued improvement in lead times helped us deliver over 20% year-over-year growth in both sales and earnings this quarter, with double-digit sales growth in all regions and business segments,” commented CEO Blake Moret.
Segment Details: Intelligent Devices sales increased 22.3% to $1.17 billion, Software & Control rose 24.9% to $821 million, and Lifecycle Services climbed 11.6% to $571.2 million.
Total segment operating earnings were $572 million (+15.5% Y/Y) for the quarter, with a margin of 22.3%, down from 23.3% a year ago.
Cash flow generated by operating activities for the quarter totaled $840 million, versus $399 million in 4Q22. Free cash flow was $776 million compared to $359 million.
The company’s Return on Invested Capital was 20.9% for FY23 compared to 15.2% for FY22.
FY24 Outlook: Rockwell reported sales growth of 0.5%-6.5%; organic sales growth of (2.0)%-4.0%.
ROK expects Diluted EPS of $11.49 – $12.99 and Adjusted EPS of $12.00 – $13.50 versus consensus of $13.22.
Price Action: ROK shares are trading lower by 3.32% at $258.08 on the last check Thursday.
