Zacks Research Issues Negative Estimate for ROK Earnings

Key Points

• Zacks Research lowered Rockwell Automation’s Q1 2028 EPS estimate to $3.73 from $3.76 and maintained a “Hold” rating.
• Rockwell’s latest quarter exceeded expectations, reporting $3.49 EPS and $2.31 billion in revenue, with revenue rising 7.9% year over year. The company reaffirmed FY 2026 EPS guidance of $13.00–$13.30.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $469.14. Rockwell also authorized up to $1 billion in share repurchases and pays a quarterly dividend of $1.38, yielding about 1.3%.

Rockwell Automation, Inc. (NYSE:ROK - Free Report) - Equities researchers at Zacks Research reduced their Q1 2028 earnings estimates for shares of Rockwell Automation in a research note issued on Thursday, September 3rd. Zacks Research analyst Team now expects that the industrial products company will post earnings of $3.73 per share for the quarter, down from their previous estimate of $3.76. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Rockwell Automation's current full-year earnings is $13.23 per share.

Rockwell Automation (NYSE:ROK - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $3.49 EPS for the quarter, beating the consensus estimate of $3.38 by $0.11. The business had revenue of $2.31 billion for the quarter, compared to the consensus estimate of $2.24 billion. Rockwell Automation had a net margin of 13.39% and a return on equity of 39.83%. The business's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the prior year, the firm earned $2.82 EPS. Rockwell Automation has set its FY 2026 guidance at 13.000-13.300 EPS.

A number of other equities analysts have also weighed in on ROK. Argus lifted their price objective on Rockwell Automation from $465.00 to $530.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Citigroup lowered their target price on Rockwell Automation from $555.00 to $536.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Evercore set a $485.00 target price on Rockwell Automation in a research note on Wednesday, August 5th. DA Davidson dropped their target price on Rockwell Automation from $500.00 to $490.00 and set a "neutral" rating on the stock in a report on Friday, August 21st. Finally, Sanford C. Bernstein lifted their price target on Rockwell Automation from $501.00 to $514.00 and gave the company a "market perform" rating in a research report on Friday, August 14th. Nine analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $469.14.

Rockwell Automation Price Performance

NYSE:ROK opened at $434.18 on Monday. Rockwell Automation has a one year low of $332.71 and a one year high of $497.36. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.74 and a current ratio of 1.08. The firm has a market cap of $48.22 billion, a price-to-earnings ratio of 40.69, a PEG ratio of 2.53 and a beta of 1.52. The firm's fifty day moving average is $453.91 and its two-hundred day moving average is $428.42.

Institutional Trading of Rockwell Automation

Institutional investors have recently bought and sold shares of the business. Virtus Advisers LLC purchased a new position in shares of Rockwell Automation during the 2nd quarter valued at approximately $25,000. MV Capital Management Inc. purchased a new stake in Rockwell Automation in the 4th quarter worth $28,000. Manchester Capital Management LLC increased its holdings in Rockwell Automation by 97.5% in the 4th quarter. Manchester Capital Management LLC now owns 79 shares of the industrial products company's stock worth $31,000 after acquiring an additional 39 shares in the last quarter. Cassaday & Co Wealth Management LLC acquired a new position in Rockwell Automation during the first quarter worth $31,000. Finally, BOK Financial Private Wealth Inc. acquired a new position in Rockwell Automation during the fourth quarter worth $33,000. 75.75% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Patricia A. Watson sold 1,100 shares of Rockwell Automation stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $431.43, for a total value of $474,573.00. Following the completion of the transaction, the director owned 6,385 shares in the company, valued at $2,754,680.55. The trade was a 14.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Matheus De A. G. Viera Bulho sold 467 shares of Rockwell Automation stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $426.96, for a total value of $199,390.32. Following the completion of the transaction, the senior vice president owned 1,267 shares of the company's stock, valued at approximately $540,958.32. This represents a 26.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 2,557 shares of company stock worth $1,098,256. Company insiders own 0.76% of the company's stock.

Rockwell Automation declared that its board has initiated a stock buyback plan on Tuesday, June 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to purchase up to 2% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Rockwell Automation Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 17th will be issued a $1.38 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $5.52 dividend on an annualized basis and a yield of 1.3%. Rockwell Automation's payout ratio is presently 51.73%.

Key Stories Impacting Rockwell Automation

Here are the key news stories impacting Rockwell Automation this week:

• Positive Sentiment: Analysts raised most forward EPS estimates. Zacks Research increased its forecasts for Q4 2026, Q2-Q4 2027, FY2026, FY2027, Q3 2028 and FY2028. The firm now expects $13.17 EPS for FY2026, $14.39 for FY2027 and $16.78 for FY2028, suggesting improving expectations for Rockwell Automation’s longer-term earnings growth.
• Positive Sentiment: Morgan Stanley maintained a Buy rating. The continued bullish view from a major brokerage provides supportive sentiment for ROK, although the broader analyst consensus remains Hold. Morgan Stanley Remains a Buy on Rockwell Automation
• Positive Sentiment: Recent operating results and capital returns remain supportive. Rockwell’s latest quarter exceeded EPS and revenue expectations, with revenue up 7.9% year over year. The company also has authorization for up to $1 billion in share repurchases and pays a quarterly dividend, which may enhance shareholder returns.
• Neutral Sentiment: The investment case is constructive but not uniformly bullish. Zacks maintained a Hold rating, and the consensus target of approximately $469.14 implies potential upside but also reflects caution at ROK’s current valuation. A recent comparison of Rockwell with other Internet of Things companies may influence sector sentiment but provides no clear company-specific catalyst. Q2 earnings highlights: Rockwell Automation vs. Internet of Things stocks
• Negative Sentiment: One near-term EPS estimate was trimmed. Zacks lowered its Q1 2027 forecast to $2.93 from $2.97, partially offsetting the broader upward revisions.
• Negative Sentiment: An executive sold shares. SVP Matheus Bulho sold 400 shares for about $168,056 after selling 467 shares earlier. Because the transactions were conducted under a pre-arranged Rule 10b5-1 plan, they are a limited bearish signal. Rockwell Automation insider share sale

Rockwell Automation Company Profile

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company's product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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