Earnings Preview: Rockwell Automation

| About: Rockwell Automation, (ROK)

Rockwell Automation (NYSE:ROK) is expected to report Q2 earnings before the market open on Wednesday, April 28 with a conference call scheduled for 8:30 am ET.


Analysts are looking for EPS of 51c on revenue of $1.09B. The consensus range is 37c-58c for EPS, and $1.02B-$1.12B for revenue, according to First Call. The company has beat EPS estimates for the past three quarters. On its Q1 conference call it forecast FY10 EPS and revenue numbers that far exceeded estimates. Heading into Q1 earnings rumors speculated that the company could be acquired by General Electric (NYSE:GE). The rumors have again surfaced in recent weeks. Sentiment on Rockwell has been overwhelmingly positive heading into Q2.

Analyst Views

On February 9, Morgan Stanley (NYSE:MS) upgraded the shares to Equal Weight from Underweight based on improving markets and operating leverage. They raised their target price to $57 from $51. On January 28, Citigroup (NYSE:C) upgraded Rockwell to Hold from Sell and raised their target price to $52 from $35. The stock has had an impressive run since Q1 numbers were released, climbing roughly 40% and touching a 52-week high of $63.84 during Monday’s trading session.