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Rockwell Automation sales impacted by U.S. distribution center change

Published 2023-08-01, 11:58 a/m
© Reuters.
ROK
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Rockwell Automation (NYSE:ROK) tumbled Tuesday after missing its third quarter profit and revenue expectations and cutting sales guidance.

The industrial automation business revealed earnings of $3.01 per share, $0.17 worse than the analyst estimate of $3.18, while revenue for the quarter came in at $2.24 billion, up 13.7% YoY but below the consensus estimate of $2.33 billion.

At the time of writing, ROK shares are down over 9% at $305.22 per share.

The company said currency translation decreased sales by 0.7% in the quarter, while a change in its US distribution center, which added capacity to support higher revenue in fiscal Q4 and beyond, impacted the timing of shipments.

"Rockwell delivered a good quarter of double-digit sales and earnings growth with continued improvement in electronic component availability," commented Blake Moret, ROK Chairman and CEO.

Looking ahead, Rockwell Automation sees FY2023 earnings between $11.70 and $12.10 per share versus the consensus of $12.01. The company lowered its organic sales growth expectations to between 14% and 16%, lower than the prior expectation of 13% to 17%.

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