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Rockwell Automation (ROK) Q3 Earnings: What's in the Cards?

The provider of industrial automation power, control and information solutions, Rockwell Automation Inc. ROK, is scheduled to report third-quarter fiscal 2017 results on Jul 26, before the market opens.

The company’s financial performance for the last four quarters has been impressive, witnessing better-than-expected results in each. Average earnings surprise was a positive 9.89%. Notably, in the last quarter, the company’s earnings of $1.55 per share topped the Zacks Consensus Estimate by 10.71%.

However, Rockwell Automation’s shares have underperformed its industry year to date. The company’s shares yielded 22.8% return compared to growth of 23.3% recorded by industry it belongs to.

Let us see whether Rockwell Automation will be able to maintain its earnings streak this quarter.

Why a Likely Positive Surprise?

Our proven model shows that Rockwell Automation is likely to beat estimates in the fiscal third quarter. This is because the company has the combination of two key ingredients for a possible earnings beat – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: Rockwell Automation has an ESP of +0.61%, with the Most Accurate estimate of $1.65 exceeding the Zacks Consensus Estimate of $1.64.

Zacks Rank: Rockwell Automation’s Zacks Rank #3, when combined with a positive ESP, makes us reasonably confident of an earnings beat.

Factors to Drive Better-than-Expected Results

Rockwell Automation’s performance will be backed by consistent growth in the consumer and transportation verticals. The company also anticipates heavy industries to grow despite the prevailing softness in oil and gas, and mining. Increased investment, acquisitions and product launches will also drive results in the quarter to be reported.

Stocks That Warrant a Look

Here are some stocks you may want to consider, as according to our model they have the right combination of elements to post an earnings beat this quarter.

AGCO Corporation AGCO, with an Earnings ESP of +2.89% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AptarGroup, Inc. ATR, with an Earnings ESP of +1.03% and a Zacks Rank #2.

Sealed Air Corporation SEE, with an Earnings ESP of +2.78% and a Zacks Rank #3.

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