MILWAUKEE - Rockwell Automation, Inc. (NYSE: NYSE:ROK) disclosed its first quarter fiscal 2024 results, indicating a slight increase in sales but a notable decrease in earnings per share (EPS). The company reported a 3.6% rise in sales compared to the same period last year, with organic sales climbing by 1.0%. Acquisitions contributed 1.4% to the overall sales growth.
The company's diluted EPS was $1.86, a 44% decline from the previous year's $3.31. Adjusted EPS also fell by 17% to $2.04 from $2.46 in the first quarter of fiscal 2023. These decreases were primarily attributed to a lower pre-tax margin, which dropped to 12.7% from 23.6% the previous year, mainly due to fair value adjustments related to Rockwell's past investment in PTC (NASDAQ:PTC) and the timing of investment spend from the prior year.
Despite the downturn in EPS, Rockwell Automation's Annual Recurring Revenue (ARR) experienced a 20% year-over-year increase. The company's Sensia joint venture reported a profitable quarter with over 25% growth in both orders and sales.
For fiscal 2024, Rockwell Automation reaffirmed its sales growth guidance of 0.5% to 6.5% and organic sales growth of -2.0% to 4.0%. However, the company updated its diluted EPS guidance to a range of $11.24 to $12.74, while maintaining its adjusted EPS guidance of $12.00 to $13.50.
The Intelligent Devices segment saw a 1.0% decrease in sales, while the Software & Control segment sales rose by 5.3%. The Lifecycle Services segment experienced a 10.5% increase in sales compared to the same quarter last year.
Cash flow from operating activities was reported at $32.6M, a decrease from $66.3 million in the first quarter of fiscal 2023. The company also reported a negative free cash flow of $(35.3) million, compared to a positive $42.1M in the prior year's quarter.
Rockwell Automation's CEO, Blake Moret, expressed optimism about the company's start to the fiscal year, highlighting increased customer order activity and the growth in recurring software and services revenue.
This article is based on a press release statement from Rockwell Automation. The information provided is factual and excludes any promotional content or subjective assessment.
InvestingPro Insights
Rockwell Automation (NYSE: ROK) has demonstrated resilience in its financial performance, with a notable 16.72% revenue growth over the last twelve months as of Q4 2023. This growth is reflected in the company's strong sales figures, despite a decrease in earnings per share (EPS) in the first quarter of fiscal 2024. With a market capitalization of $35.2B and a P/E ratio standing at 25.48, Rockwell Automation presents an interesting case for investors seeking stability in industrial automation.
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