Rockwell Automation Slashes FY24 Outlook As Q3 Sales Disappoint, CEO Cites Project Delays And Economic Uncertainty
Portfolio Pulse from Lekha Gupta
Rockwell Automation (NYSE:ROK) reported disappointing Q3 sales, leading to a downward revision of its FY24 outlook. Sales fell 8.4% to $2.05 billion, missing estimates. Adjusted EPS beat expectations at $2.71. The company cited project delays and economic uncertainty as key issues. Investors can gain exposure via Gabelli Automation ETF (NYSE:GAST) and ProShares S&P Kensho Smart Factories ETF (NYSE:MAKX).
August 07, 2024 | 1:26 pm
News sentiment analysis
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NEGATIVE IMPACT
Gabelli Automation ETF, which includes Rockwell Automation, may see a short-term impact due to Rockwell's disappointing Q3 results and lowered FY24 outlook.
As Rockwell Automation is a component of the Gabelli Automation ETF, the negative news from Rockwell is likely to have a short-term negative impact on the ETF's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
ProShares S&P Kensho Smart Factories ETF, which includes Rockwell Automation, may experience a short-term impact due to Rockwell's disappointing Q3 results and lowered FY24 outlook.
Given that Rockwell Automation is part of the ProShares S&P Kensho Smart Factories ETF, the negative news from Rockwell is likely to have a short-term negative impact on the ETF's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Rockwell Automation reported an 8.4% decline in Q3 sales, missing estimates, and revised its FY24 outlook downward. Adjusted EPS beat expectations at $2.71. The company cited project delays and economic uncertainty.
The significant decline in sales and downward revision of the FY24 outlook are likely to negatively impact Rockwell Automation's stock price in the short term. The company's challenges with project delays and economic uncertainty add to the negative sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100