Analyst Note| Joshua Aguilar |
Wide-moat-rated Rockwell Automation had a decent fiscal fourth quarter that nonetheless underperformed our prior expectations. Sales in the fourth quarter totaled $1.81 billion against our expectations of $1.92 billion. Segment operating margins also slipped under what we were forecasting. Those margins came in at 17.9% for the quarter relative to our prior expectations of 18.2%. However, adjusted EPS during the quarter came in at $2.33, only marginally below our expectations of $2.36. Finally, full-year free cash was well below our expectations, clocking in at $1.22 billion.