Shares of Rockwell Automation slipped in premarket trading following the release of its fiscal first-quarter results. The industrial-technology company reported lower-than-expected adjusted profits and sales figures, primarily due to ongoing supply-chain issues and high inventory levels among customers.
Financial Performance
For the period ending December 31, Rockwell reported an adjusted profit of $2.04 per share. This fell short of the $2.64 per share analysts surveyed by FactSet had anticipated. Sales increased by nearly 4% to reach $2.05 billion, slightly below the expected $2.1 billion.
Supply Chain Challenges Persist
CEO Blake Moret acknowledged the impact of high channel inventory and lingering supply chain constraints on the timing of product shipments. However, he remained optimistic about the underlying conditions, highlighting an upward inflection in customer orders during the quarter.
Revised Earnings Outlook
Despite the positive signs, Rockwell lowered its full-year earnings outlook. The company now forecasts earnings in the range of $11.24 to $12.74 per share, compared to its previous guidance of $11.49 to $12.99 per share. However, Rockwell maintained its adjusted earnings outlook and revenue guidance.
Rockwell Automation’s stock declined by 8% to $282.84 due to these Q1 results. Nevertheless, shares have seen a 9% increase over the past year.
