Rockwell Automation today posted terrific results for third quarter. They raised their outlook for the rest of 2006.
The company said net income rose to $149 million, or 83 cents a share, in the three months ended June 30, up from $127.3 million, or 68 cents, earned in the year-earlier third quarter. The company’s quarterly sales rose 13%, reaching $1.43 billion from $1.26 billion. Analysts polled by Thomson First Call had forecast earnings, on average, of 81 cents a share and sales of $1.4 billion.
Rockwell said its control-systems segment had quarterly sales that increased 13% to $1.17 billion, while its power-systems segment sales rose 13% to $262.3 million. Now in the midst of the fourth quarter, the company forecast that results for fiscal 2006 will “modestly exceed” its previous outlook calling for 11% revenue growth and earnings from continuing operations of $3.25 a share.
So what’s wrong with this picture? Well on this news, ROK dropped 10% on the NYSE. The stock lost over $6 per share.
You do good. You exceed your targets. You announce that you expect to exceed your targets for the rest of the year, and you are going to make earnings of better than $3.25 a share.
And they start panic selling of your stock?
Can anybody explain this to me?