Rockwell Automation Stock Set to Report Q3 Earnings: What to Expect?

Rockwell Automation Inc. ROK is scheduled to report third-quarter fiscal 2025 results on Aug. 6, before the opening bell.The Zacks Consensus Estimate for Rockwell Automation’s earnings has moved 1.1% north in the past 60 days to $2.69 per share. The consensus mark implies a 0.7% dip from the year-ago actual. The consensus estimate for sales is pegged at $2.07 billion, indicating a 0.9% year-over-year rise.  Image Source: Zacks Investment Research ROK’s Earnings Surprise HistoryRockwell Automation’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 15.6%.  Image Source: Zacks Investment Research What the Zacks Model Indicates for Rockwell AutomationOur model predicts an earnings beat for ROK this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here. Earnings ESP: Rockwell Automation has an Earnings ESP of +0.68%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Likely to Have Shaped ROK’s Q3 PerformanceRockwell Automation reported negative 7.6% organic growth  in first-quarter fiscal 2025 and negative 4%  in the second quarter of fiscal 2025 due to lower sales volumes across all the company’s segments. Citing this, ROK stated that it did not expect a significant acceleration in the order levels in fiscal 2025.The manufacturing sector remained in contraction through the quarter, as reflected in the Institute for Supply Management’s manufacturing index with a 48.7% reading in April, 48.5% in May and 49% in June. The New Orders Index also remained below 50% throughout this period.Customers have been pulling in orders due to anxiety about continued tariffs and pricing pressures. The impacts of this trend are also likely to get reflected in ROK’s order levels in the quarter under review.Our model, thus, predicts an organic sales decline of 0.2% for the quarter.ROK has faced margin headwinds in recent quarters, including higher logistics prices due to increased energy prices and constrained air freight lanes. Additionally, increased spending on talent and growth, an unfavorable mix, and currency are expected to have impacted its margins. The combination of lower sales and elevated costs is anticipated to have led to a decline in its earnings in the quarter.Nonetheless, Rockwell Automation will continue to benefit from price increase actions to mitigate the impacts of inflationary pressures, which are likely to improve margins. ROK  plans to mitigate tariff costs through pricing actions and supply-chain optimization. These tailwinds are likely to have aided growth in the to-be-reported quarter.Q3 Expectations for Rockwell Automation’s SegmentsWe expect the Intelligent Devices segment’s fiscal third-quarter sales to decline 3.3% year over year to $923 million. Our prediction for the segment’s operating profit is $194 million, indicating a year-over-year rise of 0.7%.Our model predicts sales of $583 million for the Software &   Control segment, indicating 13% growth from the prior year’s actual. The segment’s operating profit is currently pinned at $149 million, which implies a 23.7% plunge from the year-ago quarter’s reported figure.We expect the Lifecycle Services segment’s sales to be $550 million, indicating a 5.3% dip from the prior-year period’s actual. The estimate for the segment’s operating profit is $85.5 million. The figure indicates a 24% decrease from the year-ago quarter’s reported figure.ROK Stock’s Price PerformanceIn the past year, Rockwell Automation’s shares have gained 41.3% compared with the industry’s 2.7% rally. Image Source: Zacks Investment Research Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.Emerson Electric Co. EMR, expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.Parker-Hannifin Corporation PH, slated to release second-quarter 2025 results on Aug. 7, has an Earnings ESP of +0.24% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for Parker-Hannifin’s second-quarter 2025 earnings is pegged at $7.08 per share, suggesting a year-over-year rise of 4.6%. PH has a trailing four-quarter average surprise of 4.5%.Eaton Corporation plc ETN is scheduled to release second-quarter 2025 results on Aug. 5. It has an Earnings ESP of +0.93% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for Eaton’s second-quarter 2025 earnings is pegged at $2.92 per share, suggesting a year-over-year rise of 6.9%. Eaton has a trailing four-quarter average surprise of 1.8%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report Parker-Hannifin Corporation (PH): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Rockwell Automation, Inc. (ROK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks