Why Rockwell Automation Stock Dropped 15% at the Open Today
Shares of Rockwell Automation (NYSE: ROK), an industrial company with a specialization in automation, dropped sharply at the open of trading on May 3, losing as much as 15% of their value out of the gate. As of 11:02 a.m. ET today, shares were still down 13.66%. The decline is likely tied back to the company's fiscal second-quarter 2022 earnings update, which hit Wall Street before trading began today.
On the top line, Rockwell Automation reported sales of roughly $1.8 billion, up just 1.8% from the fiscal second quarter of 2021. Although the company highlighted that organic sales rose 1.3%, it also pointed out that acquisitions added 2.3% to reported sales growth. So, all in, the company's quarter wasn't exactly a great one for its core business, noting that currency was a 1.8% headwind in the quarter and more than offset organic growth. The industrial concern also missed analyst sales expectations by a few percentage points.
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Source Fool.com
