Rockwell Automation Stock Gains On Solid FY22 Outlook - Rockwell Automation (NYSE:ROK)

Rockwell Automation Inc ROK reported fourth-quarter FY21 sales growth of 15.1% year-over-year to $1.81 billion and 12.6% on an organic basis, missing the consensus of $1.91 billion.
Sales by segments: Intelligent Devices $857.1 million (+16.7% Y/Y), Software & Control $494.1 million (+18.8% Y/Y) and Lifecycle Services $456.6 million (+8.8% Y/Y).
Adjusted EPS improved 20.7% Y/Y to $2.33, beating the consensus of $2.17.
The gross margin contracted by 90 bps to 39.8%. The total segment operating margin was 17.9% versus 20.2% a year ago. The decrease was due to higher planned spend, the reinstatement of incentive compensation, and the reversal of temporary pay actions, partially offset by higher sales.
Cash flow provided by operating activities in Q4 was $204.1 million, compared to $325.8 million in 4Q20. Free cash flow was $160.4 million compared to $303.8 million last year.
The company's Organic ARR grew 18%; the total ARR is now over 8% of revenue.
FY22 Outlook: Rockwell Automation expects sales growth of 16% - 19% ($8.2 billion at mid-point) and Organic sales growth of 14% - 17%.
It expects Adjusted EPS of $10.50 - $11.10 vs. consensus of $10.24.
"2022 will be a breakout year for Rockwell, with sales expected to exceed $8B as component supply improves. Major new product introductions and recent acquisitions will fuel continued orders growth globally across all industry segments," commented Blake Moret, Chairman and CEO.
Price Action: ROK shares are trading higher by 6.12% at $339.48 on the check Tuesday.

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