Rockwell Automation Inc. shares plunged in pre-market trading after the industrial automation company missed Wall Street estimates for its fiscal fourth quarter earnings and slashed its outlook for 2025 amid weakening demand.
The Milwaukee-based company reported adjusted earnings per share of $2.47 for the quarter ended September 30, narrowly beating analysts' average estimate of $2.41. However, revenues fell 21% year-over-year to $2.04 billion, missing expectations of $2.08 billion.
The miss on the top line was driven by continued softness in many of Rockwell's end markets, with orders coming in lower than expected. Organic sales tumbled 21% in the quarter, reflecting the broad-based demand slowdown across regions and segments.
For fiscal 2025, Rockwell cut its guidance, forecasting adjusted EPS of $8.60 to $9.80, well below the consensus estimate of around $10.67. The company expects organic sales growth to range between -4% and 2%, compared to the prior guidance of 3% to 7.5% growth.
Rockwell CEO Blake Moret cited "uncertainty in the current macroeconomic environment" as the reason for the lowered outlook. He said the company is bracing for its first-quarter results to be weaker than the fourth quarter, but expects a gradual improvement through the year as it navigates softer demand conditions.
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