Rockwell Automation (ROK)

[Investorman]

Rockwell Automation Doing OK
Monday January 12, 11:57 am ET
By Mario Ricchio

Rockwell Automation Inc. (NYSE: ROK - News) is a leading industrial automation company providing power, control, and information solutions to improve manufacturing capacity. On a year-over-year [y-o-y] basis, the company posted a revenue growth of 14% and EPS growth of 11% in FY08. Rockwell Automation reached its target of achieving 50% of revenue from outside the U.S. and now targets to increase this to 60% by 2013.

Due to the uncertainty in the business environment and including the impact of currency, management forecasts a y-o-y decline of 6% 10% in FY09 revenue. Also, management forecasts FY09 EPS in the range of $3.10-$3.60, down from $4.11 reported in the FY08. We maintain our Hold recommendation on ROK shares.