Rockwell Automation Inc. (ROK - Get Report) climbed 6.4% to close at $173.63 on Tuesday after the industrial equipment and software maker company beat Wall Street's first-quarter earnings and revenue expectations.
The Milwaukee-based company reported net income of $80.3 million, or 66 cents a share, compared with a year-earlier loss of $236.4 million, or $1.84 a share.
Adjusted for one-time gains and costs, the company earned $2.21 a share, beating analysts' forecasts of $1.98 with earnings rising 13% from $1.96 a year ago. The company posted revenue of $1.64 billion, up 3.5% from a year ago, that beat analysts' forecasts of $1.63 billion.
Rockwell said the increases in net income and earnings per share were driven by the absence of charges associated with the Tax Cuts and Jobs Act of 2017 recognized a year ago. The charges were partially offset by fair-value adjustments recognized in the current first quarter in connection with Rockwell's $1 billion investment in PTC, which offers computer-aided design programs and lifecycle management software for manufacturers.
Total segment operating margin was 22.8% compared with 22.4% a year ago. Rockwell said the increase in total segment operating margin was primarily due to higher sales, which were partially offset by higher investment spending. Total segment operating earnings were $374.9 million in the first quarter of fiscal 2019, up 5.5% from $355.4 million in the same period of fiscal 2018.
Rockwell Automation said it expects full-year earnings in the range of $8.85 to $9.25 a share and organic sales growth of 3.7% to 6.7%.
"We see continuing uncertainty due to trade tensions and geopolitical risks," Blake D. Moret, chairman and CEO, said in a statement. "However, forecasts continue to call for industrial production growth. We had a good first quarter and our backlog grew. Project quoting activity was also strong in the quarter."
On Monday, Rockwell announced it had acquired engineering software developer Emulate3D for an undisclosed sum.