Benzinga - by Zacks, Benzinga Contributor.
Rockwell Automation Inc. (NYSE: ROK) announced that it is expanding its collaborations with NVIDIA (NASDAQ: NVDA) to accelerate the development of safer and smarter industrial AI mobile robots in manufacturing. This move will help customers improve performance and efficiency.
Previously, in March 2024, the companies collaborated to accelerate a next-generation industrial architecture. ROK intends to transform the industry by designing the factory of the future, making it easier for automation customers to digitize industrial processes.
ROK plans on integrating NVIDIA Omniverse Cloud APIs with its Emulate3D digital twin application. This will enable factory analysis, including operations and simulation, to be quicker and more predictive than ever.
As part of this partnership, NVIDIA joined the Rockwell Automation PartnerNetwork, allowing customers to use their applications to improve resilience, agility and sustainability. The companies will benefit from Rockwell's industrial AI expertise and NVIDIA's AI and robotics capabilities, which will fuel an exciting new generation of autonomous mobile robots.
Rockwell Automation is poised well to benefit from broadening its portfolio of hardware and software products, solutions, and services. It is also gaining traction from investments in the cloud.
The company reported adjusted earnings per share of $2.50 in second-quarter fiscal 2024 (ended Mar 31, 2024), surpassing the Zacks Consensus Estimate of $2.15. The bottom line declined 17% year over year, primarily attributed to lower sales volume and operating margins in the Intelligent Devices and Software & Control segments. The improved performance of the Lifecycle Services segment somewhat offset this.
Total revenues were $2.13 billion, down 6.6% from the prior-year quarter's levels. The top line beat the Zacks Consensus Estimate of $2.04 billion.
Price Performance In the past year, Rockwell Automation's shares have dropped 11.7% compared with the industry's 13.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider Rockwell Automation currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Intellicheck, Inc. (NASDAQ: IDN) and ACCO Brands Corporation (NYSE: ACCO). IDN currently sports a Zacks Rank #1 (Strong Buy) and ACCO carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Intellicheck's 2024 earnings is pegged at 2 cents. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 28.9%. IDN's shares have gained 15.2% in the past year.
The Zacks Consensus Estimate for ACCO Brands' 2024 earnings is pegged at $1.07 per share. The consensus estimate for 2024 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 25.9%. The stock has gained 6.6% in the past year.
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