Rockwell Automation Inc (NYSE:ROK) stock rose 0.58% (As on January 27, 11:48:26 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 23. Intelligent Devices sales increased 4% to $936 million, Software & Control rose 11.6% to $573 million, and Lifecycle Services climbed 6.4% to $472 million. Total segment operating earnings rose 12.9% to $401 million, with the margin at 20.2% versus 19.1% a year ago, primarily due to positive price/cost and higher sales volume partially offset by higher investment spend. The company held $460 million in cash and equivalents as of Dec. 31, 2022. Cash generated by operating activities in the quarter totaled $66.3 million. Fiscal 2023 first quarter Net income attributable to Rockwell Automation was $384 million or $3.31 per share, compared to $242 million or $2.05 per share in the first quarter of fiscal 2022. The increases in Net income attributable to Rockwell Automation and diluted EPS are primarily due to fair value adjustments recognized in fiscal 2023 and fiscal 2022 in connection with the investment.

ROK in the first quarter of FY 23 has reported the adjusted earnings per share of $2.46, beating the analysts’ estimates for the adjusted earnings per share of $1.88. The company had reported the adjusted revenue growth of 6.7 percent to $1.98 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.93 billion. Organic sales increased 9.9%, currency translation decreased sales by 4.0%, and acquisitions increased sales by 0.8%. Cash flow generated by operating activities in the first quarter of fiscal 2023 was $66.3 million, compared to $(12.0) million in the first quarter of fiscal 2022. Free cash flow in the first quarter of fiscal 2023 was $42.1 million, compared to $(49.1) million in the same period last year. Increases in cash flow provided by operating activities and free cash flow were primarily driven by higher pre-tax income.

Rockwell raised its FY23 Adjusted EPS outlook from $10.20 – $11.00 to $10.70 – $11.50 versus an estimate of $10.56. The company also raised FY23 reported sales growth outlook from 7.5% – 11.5% to 10% – 14%. Organic sales growth is expected to be in the range of 11% to 15% and Inorganic sales growth to be about 1%.