Rockwell Automation (NYSE:ROK) slid on Wednesday following a report that the Biden administration is investigating if the infrastructure technology company exposed assets.
The Wall Street Journal reported that the administration is looking into whether the industrial technology company has exposed U.S. military, infrastructure and government assets in a cyberattack through one of its facilities in China. The probe is focused on a facility in in Dalian, China, according to the report.
Elsewhere in company news, ROK released its financial results recently for 2Q23, reporting an adj. EPS of $3.01, exceeding the consensus estimate of $2.58. The segment EBIT also surpassed the consensus forecast of $427 million, coming in at $484 million. The company's top-line performance demonstrated a strong organic growth rate of 27%, with Intelligent Devices growing by 27%, Software & Control by 42%, and Life Cycle Services by 12%. Despite the prevailing economic uncertainty, ROK's management has revised their guidance for the FY23, raising their adj EPS forecast to a range of $11.50 to $12.20. Moreover, they project an organic sales growth rate ranging between 13% to 17%.
Rockwell offers products such as control systems, motor control devices, sensors, and industrial control panels. The visibility of its financial model is also well supported by its installed base of customers.
ROK dumped $3.21, or 1.2%, shortly after the open to $274.56.
