Rockwell Automation (NYSE: ROK) reported Q3 EPS of $1.27, $0.12 better than the analyst estimate of $1.15. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.38 billion.

• Reported sales down 16.3 percent year over year; organic sales down 17.6 percent
• Inorganic investments contributed 3 percent to reported sales
• Diluted EPS of $2.73; Adjusted EPS of $1.27
• Liquidity position further enhanced by strong cash flow generation
• Updating fiscal 2020 Diluted EPS guidance to $8.06 - $8.26 and Adjusted EPS guidance to $7.40 - $7.60
• New operating segments effective Q1 fiscal 2021 to drive simplification and accelerate profitable growth

Commenting on the third quarter results and current business conditions, Blake Moret, Chairman and CEO, said "We continue to build resiliency for ourselves and for our customers. Year-over-year results are down, and conditions remain difficult, but our employees have responded extraordinarily well, and we remain focused on keeping them safe. Our earnings were higher than expected for the quarter, primarily driven by better organic sales."

Moret also announced, “We are taking the next step in accelerating profitable growth by organizing our business in a way that better aligns us with the evolving needs of our customers. Beginning next fiscal year, we will operate with three operating segments - Intelligent Devices, Software & Control, and Lifecycle Services. These new segments will simplify our structure around essential offerings, leverage our sharpened industry focus, and add software talent, which will play a larger role in our future value.”

Moret continued, “We are confident that this model will enable us to provide even more value. Nobody is better positioned to bring Information Technology (IT) and industrial Operational Technology (OT) together than Rockwell and our partners.”

“This change builds on our success and accelerates our progress to bring the Connected Enterprise to life. It’s the right time to make these changes, as we strengthen the resilience of our business model. Our growth framework remains gaining share in our core, growing double digits in information solutions and connected services, and adding a point or more of growth through inorganic investments.”

GUIDANCE:

Rockwell Automation sees FY2020 EPS of $7.40-$7.60, versus the consensus of $7.34.

“While we, as a company, are managing well in this environment, we are highly sensitive to the toll this is taking on our employees during this time. Beyond the fear of a loved one getting sick, racial injustice is on our minds as we develop actions as a company and as individuals that will help put a permanent end to the denial of fundamental human rights. Additionally, thousands of employees continue to work under very difficult conditions, including the temporary pay cuts we implemented in May. These actions were necessary to better align our costs to current business conditions while preserving jobs, and we intend to reverse them by the end of December, hopefully sooner. Additionally, we are making another recognition payment to our manufacturing associates worldwide, who are on the front lines of maintaining our essential operations,” Moret concluded.

For earnings history and earnings-related data on Rockwell Automation (ROK) click here.