Earnings Preview: Rockwell Automation

| About: Rockwell Automation, (ROK)

Rockwell Automation (NYSE:ROK) is expected to report Q1 earnings before the market open on Wednesday, January 27 with a conference call scheduled for 8:30 am ET.


Analysts are looking for EPS of 35c on revenue of $1.05B. The consensus range is 23c-39c for EPS, and $999M-$1.07B for revenue, according to First Call. The company has beat EPS estimates for the past two quarters. Recent speculation surrounding the stock concerns a potential takeover bid by General Electric (NYSE:GE) which was first reported last month by the Wall Street Journal.

Analyst Views

Analyst Steve Tusa at JP Morgan made the case that GE could make a $60 per share offer for Rockwell as part of its push to acquire leading industrial companies. Tusa wrote that GE is interested in Rockwell’s technology to compete with Germany’s Siemens (SI). The same day Sterne Agee refuted those claims, saying GE is unlikely to bid for Rockwell due to potential anti-trust issues. On January 11 Deutsche Bank downgraded the firm to Sell from Hold with a $44 price target. The stock hit a 52-week high earlier this month, and is up almost 60% from last July.