Latest news with #supplychaindisruption
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.
Associated Press
27-06-2025
- Business
- Associated Press
Cascale Urges Outdoor Industry To Prioritize Sustainability for Long-Term Resilience
Joleen Ong, senior director of brand and retailer membership at Cascale, recently joined a panel of industry experts at the Outdoor Retailer Industry Day in Utah to discuss external factors impacting the future of the outdoor industry. The 'Under Pressure: Understanding the Continuing Forces Redefining Outdoor Business' panel explored how brands are responding to tariffs, supply chain disruptions, sustainability demands, evolving consumer values, and boycotts of American products, offering actionable insights on building resilience and driving impact in a rapidly changing landscape. Moderated by Suzanne Stroeer, owner of Dreamland Safari Tours and founder of AWExpeditions, the discussion also included Laura Schaffer, vice president of integrated marketing, brand amplification and impact at Orvis, and Jenni Staudacher, vice president of supply chain at Salomon. Ong highlighted the impact of tariffs on supply chain decisions on brands, not only on costs but also on sourcing and planning. She noted how abrupt factory exits in response to trade shifts could result in unpaid wages, an increase in contract labor, and weakened supplier trust, which could subsequently dull the market signal needed for suppliers to make CAPEX investments for decarbonization. On the importance of embedding responsible purchasing into governance, Ong shared how leading brands build cross-functional alignment — between sustainability, sourcing, and finance — in order to make decisions that reflect long-term priorities, not just a short-term response to tariffs, thereby shifting from transactional to strategic sourcing. She emphasized the need to consider key trade-offs between local and global sourcing, urging sourcing professionals to consider localizing the sourcing of trims, raw materials, and components, which, in some cases, need to be imported to ensure supply and demand are met. Delving deeper into resourcing and deprioritization of sustainability initiatives, Ong noted that brands are doubling down on efforts despite tight budgets, reframing sustainability as a business continuity issue in alignment with growing regulatory requirements. She highlighted how brands with long-term supplier relationships are more resilient when capacity is limited. Ong also pointed out how brands are increasingly integrating sustainability KPIs into sourcing scorecards, rethinking what they measure and refining their metrics to reward trust, on-time delivery, emissions progress, and social performance, instead of prioritizing cost as a top scorecard metric, which can unintentionally penalize sustainability. Ong shared insights on how competitors within the same market can collaborate to drive systemic change in sustainability. Reflecting Cascale's mandate to foster pre-competitive collaboration, she emphasized that most environmental and social challenges, like factory emissions or excessive overtime, cannot be solved by any single brand in isolation. Ong underscored the importance of competitors aligning on shared expectations, data systems, and improvement frameworks to level the playing field, sending clearer, more consistent signals to suppliers across the value chain. Reflecting on the recent Cascale Forum, which took place in Ho Chi Minh City, Ong shared insights from the event, where 42 percent of attendees said aligned brand requirements are key to accelerating decarbonization. She emphasized the importance of brands collaborating —on shared KPIs, improvement programs, or supplier scorecards — to reduce duplication and give factories confidence that sustainability progress will be rewarded, not penalized. Ong shared how Cascale is encouraging brands to integrate climate and labor data more deeply into sourcing decisions — not just for reporting, but for actual business decisions, which is essential to driving a shift from ambition to accountability. She concluded by urging the outdoor industry to treat sustainability as a strategic infrastructure, not a side initiative, to build a future-proof industry. Visit 3BL Media to see more multimedia and stories from Cascale
