Shares of one automation technology provider slipped after earnings, while another jumped. Both sets of numbers, however, offered some encouragement for industrial investors.
For starters, on Tuesday morning, Rockwell Automation reported fiscal third-quarter earnings per share of $3.49, up 22% year over year, from sales of $2.3 billion, up 8% year over year. Wall Street was looking for EPS of $3.38 from sales of $2.2 billion, according to FactSet.
Full-year guidance was raised to a range of $13 to $13.30, up from a prior range of $12.50 to $13.10. The new $13.15 midpoint implies fourth quarter earnings per share of about $3.60. Wall Street projects $3.56.
Nothing seems amiss. Still, shares were down 4.5% in premarket trading at $459.45, while S&P 500 and Dow Jones Industrial Average futures were up 0.2% and 0.7%, respectively.
Shares of automation technology provider Zebra Technologies were up 9.9% at $320.57 after it reported better-than-expected fiscal second-quarter numbers.
It seems to take a bigger beat to send shares higher after earnings these days.
Zebra announced adjusted earnings per share of $6.35, up 76% year over year, from sales of $1.6 billion, up 20% year over year. Wall Street was looking for EPS of $4.36 and sales of $1.5 billion.
For the full year, Zebra now expects sales growth of about 15%, up from prior guidance of 12%. Earnings per share should be about $21, up from prior guidance. New guidance implies second-half earnings of about $9.90, about 50 cents better than current Wall Street projections.
Both companies delivered similar beat-and-raise quarters. Zebra, however, delivered the bigger beat and was being rewarded in early trading. Overall, automation technology sales are growing, and outlooks are improving, which is good news for industrial investors.
Starting points also help explain the reactions. Coming into Tuesday trading, Rockwell stock was up 37% over the past 12 months. Zebra shares were down 15% over the past 12 months.
Share changes left Rockwell stock trading at about 33 times earnings expected over the coming 12 months. Zebra shares trade for about 14 times.