Latest news with #BlakeMoret
Yahoo
03-07-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Rockwell Automation's Q1 Earnings Call
Rockwell's first quarter results were well-received by the market, driven by strong execution on cost control and margin expansion despite a challenging sales environment. Management credited robust performance to effective pricing, ongoing cost reduction programs, and resiliency investments made during recent supply chain disruptions. CEO Blake Moret highlighted sequential improvement in customer demand and cited particularly strong growth in e-commerce and warehouse automation solutions, which offset declines in automotive and process sectors. He noted, 'Our value proposition is stronger than ever before,' pointing to recent share gains in power control and increased adoption of Rockwell's automation and robotics offerings. Is now the time to buy ROK? Find out in our full research report (it's free). Revenue: $2.00 billion vs analyst estimates of $1.98 billion (5.9% year-on-year decline, 1.1% beat) Adjusted EPS: $2.45 vs analyst estimates of $2.12 (15.8% beat) Adjusted EBITDA: $452 million vs analyst estimates of $380.2 million (22.6% margin, 18.9% beat) Management raised its full-year Adjusted EPS guidance to $9.70 at the midpoint, a 5.4% increase Operating Margin: 17%, up from 15.6% in the same quarter last year Organic Revenue fell 4% year on year (-8.1% in the same quarter last year) Market Capitalization: $38.63 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Obin (Bank of America) asked about drivers behind e-commerce and warehouse automation growth and visibility into the second half. CEO Blake Moret cited multiple customer segments and confirmed data centers are part of this vertical, attributing growth to ongoing investments by consumer and logistics companies. Scott Davis (Melius Research) questioned how customers are responding to reshoring trends versus macro uncertainty. Moret noted optimism in U.S. manufacturing but highlighted project delays due to tariff-related cost uncertainty and interest rates, especially in automotive and process sectors. Chris Snyder (Morgan Stanley) inquired if project delays are likely to reverse with improved visibility. Moret clarified that delays are not cancellations and expects investments to resume as cost certainty returns; North America remains the strongest region. Andy Kaplowitz (Citigroup) asked about the long-term margin potential and cost-out runway. CFO Christian Rothe pointed to hundreds of ongoing productivity projects and expects further structural cost opportunities, though specifics for future years were not provided. Joe O'Dea (Wells Fargo) requested details on tariff exposure by region and competitive positioning. Rothe explained the majority of U.S. imports from Mexico and Canada are compliant with trade agreements, and Moret emphasized Rockwell's flexible manufacturing footprint as a key advantage. Heading into the next quarters, the StockStory team will closely monitor (1) execution of tariff offset strategies and supply chain moves, (2) progress in automation, robotics, and software adoption across key verticals like e-commerce and life sciences, and (3) the pace of recovery in delayed capital projects, especially in automotive and energy. Continued improvement in recurring software revenue and the impact of cost actions will also be key indicators. Rockwell Automation currently trades at $342.74, up from $252.78 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
11-06-2025
- Business
- Yahoo
ROK Q1 Earnings Call: Tariffs, Cost Discipline, and Automation Demand Shape Outlook
Industrials automation company Rockwell (NYSE:ROK) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 5.9% year on year to $2 billion. Its non-GAAP profit of $2.45 per share was 15.8% above analysts' consensus estimates. Is now the time to buy ROK? Find out in our full research report (it's free). Revenue: $2 billion vs analyst estimates of $1.98 billion (5.9% year-on-year decline, 1.1% beat) Adjusted EPS: $2.45 vs analyst estimates of $2.12 (15.8% beat) Management raised its full-year Adjusted EPS guidance to $9.70 at the midpoint, a 5.4% increase Operating Margin: 17%, up from 15.6% in the same quarter last year Organic Revenue fell 4% year on year (-8.1% in the same quarter last year) Market Capitalization: $36.66 billion Rockwell Automation's first quarter results reflected a mix of sequential improvement in customer demand and ongoing external pressures, particularly around tariffs and global policy uncertainty. CEO Blake Moret highlighted that the company's operational resilience—built through investments in supply chain flexibility and production location shifts—helped Rockwell offset the impact of new tariffs and maintain strong customer service. The company's Intelligent Devices segment saw year-over-year declines but posted double-digit sequential growth, with notable wins in power control products and mobile robots for warehouse automation. Software and Control, meanwhile, benefited from increased adoption of cloud-based design tools and continued progress in industry verticals such as life sciences. Management noted that project delays were concentrated in capital-intensive segments like energy and automotive, attributing these pauses to customer uncertainty about tariffs and input costs. Looking forward, Rockwell Automation's updated guidance is based on expectations of continued operational execution and a cautious approach to customer capital expenditures. Management raised its full-year profit outlook, citing margin expansion actions, cost reductions, and targeted pricing strategies as key levers to counteract rising compensation costs and tariff exposures. CFO Christian Rothe emphasized the company's ability to 'fully offset fiscal 2025 tariff costs through a combination of pricing and supply chain actions,' while also maintaining a prudent hiring approach and prioritizing investments in new product development. Moret cautioned that policy and trade uncertainties, as well as the timing of large capital projects, remain important variables in the company's growth trajectory. The company plans to monitor the direct impact of tariffs on both sales and earnings throughout the rest of the year. Management attributed quarterly performance to sequential demand improvement, effective cost controls, and resilience strategies that offset external uncertainties, including tariffs and delayed customer projects. Sequential demand growth: Rockwell saw a return to sequential sales growth in its Intelligent Devices and Software and Control segments, driven by increased customer activity in warehouse automation, e-commerce, and data center projects. Management noted that these segments benefited from both new product launches and recovering demand in core markets. Tariff and supply chain response: The company implemented targeted pricing actions and production location shifts to minimize the impact of new tariffs. These strategies, supported by previous investments in supply chain flexibility, allowed Rockwell to neutralize tariff-related costs in the quarter. Management indicated that these actions also provided a competitive advantage in domestic markets. Project delays in capital-heavy segments: Lifecycle Services experienced a decline in organic sales as customers delayed capital-intensive projects in energy and automotive due to uncertainty around tariffs and commodity prices. Management reported that these delays were pauses rather than cancellations, with some projects resuming in April. Margin expansion through cost actions: Rockwell expanded operating margins through ongoing cost reduction programs, SKU rationalization, and operational efficiencies. Management highlighted that about $155 million in cost savings had already been realized in the first half, exceeding initial expectations, and that R&D investments remained focused on new product development. Growth in recurring revenue and software: The company reported 8% annual recurring revenue growth, led by double-digit gains in its Plex and Fiix software businesses. Increased adoption of cloud-based design tools and modular automation solutions contributed to the positive momentum in Software and Control, especially in life sciences and food and beverage verticals. Rockwell's outlook for the rest of the year is shaped by ongoing cost discipline, pricing actions to offset tariffs, and customer investment trends in automation and digitalization. Tariff management and pricing: Management expects to fully offset anticipated tariff costs through a mix of targeted price increases and continued supply chain adjustments. The effectiveness of these measures will be key in maintaining profitability, but the scale and timing of future tariffs remain a significant area of uncertainty. Automation demand in key verticals: Growth is expected in warehouse automation, e-commerce, and data center markets, with management citing a robust project pipeline in these areas. Conversely, capital-intensive industries such as energy and automotive may continue to see delayed investments until there is greater visibility on trade and commodity input costs. Structural cost reduction and product innovation: The company plans to sustain margin expansion by pursuing further structural cost reductions, including SKU rationalization and manufacturing optimization. Continued investment in new product innovation, especially in cloud-based and modular automation solutions, is intended to drive long-term growth and improve resilience against market fluctuations. In the coming quarters, the StockStory team will be watching (1) the pace at which delayed capital projects in energy and automotive are reactivated as uncertainty about tariffs and commodity costs diminishes, (2) the effectiveness of Rockwell's pricing strategies and supply chain adjustments in fully offsetting new tariff exposures, and (3) the continued expansion of recurring revenue streams from software and cloud-based solutions. Progress on margin expansion initiatives and sustained demand in automation verticals will also be critical indicators of execution. Rockwell Automation currently trades at a forward P/E ratio of 32.5×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
National Post
03-06-2025
- Business
- National Post
Ninety-Five Percent of Manufacturers Are Investing in AI to Navigate Uncertainty and Accelerate Smart Manufacturing
Article content Article content MILWAUKEE — Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced the results of the 10 th annual ' State of Smart Manufacturing Report.' The global study, fielded in March 2025, surveyed more than 1,500 manufacturers across 17 of the leading manufacturing countries. Article content As manufacturers continue to face uncertainty driven by economic shifts, the report highlights how companies are turning to smart manufacturing technologies to manage risks, improve performance, and support their workforce. It also examines adoption of emerging technology, including artificial intelligence (AI), machine learning (ML), and cloud-based systems. Article content 'Today's technology advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future,' says Blake Moret, Chairman and CEO, Rockwell Automation. 'As this year's report shows, manufacturers around the world are using smart manufacturing to navigate disruption and create new opportunities for speed and agility. At Rockwell, we believe innovation and resilience go hand in hand. With the right technology and right people, we can simplify complexity and lead with confidence during times of dynamic change.' Key global findings include: Article content 81% of manufacturers say external and internal pressures are accelerating digital transformation, with cloud/SaaS, AI, cybersecurity, and quality management ranking as the top areas of smart manufacturing technology investments. 95% of manufacturers have invested in, or plan to invest in, AI/ML over the next five years. Organizations investing in generative and causal AI increased 12% year-over-year, signaling a maturing approach to advanced technologies beyond experimentation. Cybersecurity ranks as the second biggest external risk, with 49% of manufacturers planning to use AI for cybersecurity in 2025 – up from 40% in 2024. 48% of manufacturers plan to repurpose or hire additional workers due to smart manufacturing investments. Additionally, 41% are using AI and automation to help close the skills gap and address labor shortages. Quality control remains the top AI use case for the second year in a row, with 50% planning to apply AI/ML to support product quality in 2025. Article content Beyond these data points, the report reflects broader movement towards more efficient and adaptive operations. Manufacturers are using smart technologies to strengthen supply chains, accelerate sustainability initiatives and make faster, more informed decisions. There has also been a 5% rise in the importance of analytical and AI skills for leaders, showing that talent development and technical innovation must go hand in hand. Article content Still, many manufacturers face challenges when implementing AI. Nearly half of respondents say the ability to apply AI is now an extremely important skill – up from just 10% last year. Article content The full findings of the report can be found here. Article content Methodology Article content This report analyzed feedback from 1,560 respondents from 17 of the top manufacturing countries with roles from management up to the C-suite and was conducted in association with Rockwell Automation and Sapio Research. The survey sampled from a range of industries including Consumer Packaged Goods, Food & Beverage, Automotive, Semiconductor, Energy, Life Sciences, and more. With a balanced distribution of company sizes with revenues spanning $100 million to over $30 billion, it offers a wide breadth of manufacturing business perspectives. Article content Article content Article content Contacts Article content Article content
Yahoo
30-05-2025
- Business
- Yahoo
Rockwell Automation (NYSE:ROK): Strongest Q1 Results from the Internet of Things Group
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Rockwell Automation (NYSE:ROK) and the best and worst performers in the internet of things industry. Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don't pan out, they may have to make costly pivots. The 6 internet of things stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.9% while next quarter's revenue guidance was in line. Luckily, internet of things stocks have performed well with share prices up 10.6% on average since the latest earnings results. One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery. Rockwell Automation reported revenues of $2.00 billion, down 5.9% year on year. This print exceeded analysts' expectations by 1.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EBITDA estimates. "Rockwell delivered another quarter of strong operating performance with sales, margins, and EPS all above our expectations. We saw a healthy intake of orders across most of our lines of business, with total company book-to-bill in-line with our historical average of about 1.0. We also continue to add resiliency to our operations as we navigate a highly dynamic environment. I'm proud of how our employees and partners are working together to position Rockwell as the automation leader of choice for our customers in the U.S. and around the world," said Blake Moret, Chairman and CEO. Interestingly, the stock is up 24.6% since reporting and currently trades at $314.93. Is now the time to buy Rockwell Automation? Access our full analysis of the earnings results here, it's free. A spin-off of a spin-off, Vontier (NYSE:VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors. Vontier reported revenues of $741.1 million, down 1.9% year on year, outperforming analysts' expectations by 2.8%. The business had a strong quarter with a solid beat of analysts' adjusted operating income estimates and a solid beat of analysts' organic revenue estimates. The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $36.09. Is now the time to buy Vontier? Access our full analysis of the earnings results here, it's free. Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities. SmartRent reported revenues of $41.34 million, down 18.1% year on year, exceeding analysts' expectations by 3.1%. Still, it was a softer quarter as it posted a significant miss of analysts' adjusted operating income estimates. SmartRent delivered the slowest revenue growth in the group. As expected, the stock is down 5.7% since the results and currently trades at $0.85. Read our full analysis of SmartRent's results here. Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare. AMETEK reported revenues of $1.73 billion, flat year on year. This result missed analysts' expectations by 0.7%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts' EBITDA estimates but a slight miss of analysts' organic revenue estimates. AMETEK had the weakest performance against analyst estimates among its peers. The stock is up 6.4% since reporting and currently trades at $180.04. Read our full, actionable report on AMETEK here, it's free. Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries. Trimble reported revenues of $840.6 million, down 11.8% year on year. This number topped analysts' expectations by 3.8%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts' EBITDA estimates but EPS guidance for next quarter missing analysts' expectations. Trimble scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 13.1% since reporting and currently trades at $71.64. Read our full, actionable report on Trimble here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
09-05-2025
- Business
- Business Wire
Rockwell Automation to Present at Wolfe's 18th Annual Global Transportation & Industrials Conference
MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) Chairman and CEO, Blake Moret, and SVP and CFO, Christian Rothe, will present at Wolfe's 18th Annual Global Transportation & Industrials Conference on Wednesday, May 21, 2025, in New York. The fireside chat will be webcast beginning at approximately 9:10 a.m. EDT and will be available on the Rockwell Automation Investor Relations website at Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 27,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2024. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit
