Rockwell Automation falls most in 8 months after cutting guidance (NYSE:ROK)

Rockwell Automation (NYSE:ROK) on Tuesday declined 7.6% — the most in eight months – after the provider of industrial automation technology cut sales guidance for the remainder of the year.

Management forecast sales growth of 14% to 16%, less than prior guidance for as much as 16.5%. The company revised the upper limit of its forecast for organic sales growth to 16% from 17% previously.

Adjusted EPS is expected to be in a range of $11.70 to $12.10, less than the prior range of as much as $12.20.

Rockwell (ROK) lifted its EPS estimate to $12.46 to $12.86 from $11.71 to $12.41 previously.

During its fiscal Q3 ended on June 30, net profit jumped 34% to $400.2 million, or $3.45 a share, from $297.9 million, or $2.55 a share, a year earlier. Adjusted EPS of $3.01 missed the average estimate of $3.19 among Wall Street analysts.

Sales rose 14% from a year earlier to $2.24 billion, missing the consensus forecast of $2.34 billion. Organic sales that strip out the effects of foreign-currency moves were up 13%.

“The opportunities for automation to play a strategic role in our customer success have never been higher,” Blake Moret, chairman and CEO, said in a call with investors. “Workforce scarcity, American shoring of manufacturing and the premium being placed on business agility are all positive reads for Rockwell.”