Earnings Preview: Rockwell Automation

Jul.27.10 | About: Rockwell Automation, (ROK)

Rockwell Automation (NYSE:ROK) is expected to report Q3 earnings before the market open on Wednesday, July 28 with a conference call scheduled for 8:30 am ET.


Analysts are looking for EPS of 80c on revenue of $1.22B. The consensus range is 69c-86c for EPS, and $1.17B-$1.26B for revenue, according to First Call. The company has beat EPS and revenue estimates for the past three quarters. On its Q2 report, Rockwell raised its FY10 EPS guidance to $2.60-$2.90 vs. consensus of $2.92.

Analyst Views

Recent sentiment has been mixed. The company increased its dividend 21% on June 3, a strong signal that management expects positive earnings going forward. On April 29 it was upgraded to Hold from Sell at Deutsche Bank. The firm raised its target for the shares to $60 from $49. On May 20, Rockwell was downgraded to Neutral from Overweight at JP Morgan.

The shares have traded sideways to slightly down since Q2 results were released, despite mostly positive news.