Rockwell Automation (NYSE: ROK) reported Q1 EPS of $2.38, $0.49 better than the analyst estimate of $1.89. Revenue for the quarter came in at $1.57 billion versus the consensus estimate of $1.62 billion.

• Reported sales down 7.1 percent year over year; organic sales down 9.7 percent
• Total orders up double digits sequentially, exceeding pre-pandemic levels
• Inorganic investments contributed 1.8 percent to reported sales growth
• Diluted EPS of $5.06 and Adjusted EPS of $2.38 include $0.45 from a favorable legal settlement
• Cash Flow from Operations of $346.5 million; Free Cash Flow conversion of 115%
• Updating fiscal 2021 Diluted EPS guidance to $11.07 - $11.47 and Adjusted EPS guidance to $8.70 - $9.10

"The recovery in manufacturing is happening at a much faster pace than we were anticipating, with our total orders exceeding pre-pandemic levels. Demand was especially strong for Intelligent Devices and Information Solutions, which is expected to drive higher growth for the balance of the year. We continue to increase capacity and are expanding our manufacturing workforce to meet this sharp uptick in demand," said Blake Moret, Chairman and CEO.

"In addition, our focus on protecting our intellectual property resulted in an important legal win in the quarter. We are using a portion of the gain that resulted from this ruling to make additional investments this year. This includes investments to pull forward key software product launches, which will increase recurring revenue in fiscal 2022 and beyond, as well as sustainability-related investments to drive our ESG goals," he said.

GUIDANCE:

Rockwell Automation sees FY2021 EPS of $8.70-$9.10, versus the consensus of $8.70.

The COVID-19 pandemic and global efforts to respond to it continue to evolve. Our projections reflect the strong order performance we saw in the first quarter and assume no increase in pandemic-related facility closures or disruptions to the supply chain.

“We continue to expand our capabilities and software expertise, as demonstrated by our recent acquisitions and today's announcement about additions to my leadership team. As the world recovers, the strong demand we are seeing is testament to our value helping customers increase their resilience, agility, and sustainability,” Moret concluded.

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