- Regal Rexnord updated its full-year adjusted EPS forecast to $9.40-$9.80, down from $9.60-$10.40.
- Second quarter adjusted EPS at $2.29, compared to $2.56 y/y, exceeding the estimate of $2.13.
- Net sales for Q2 reached $1.55 billion, a 12% decrease y/y, but above the $1.51 billion estimate.
- Segment performance:
- Industrial Powertrain Solutions: $675.5 million in net sales, surpassing the $670 million estimate.
- Power Efficiency Solutions: $410.9 million in net sales, higher than the $399.1 million estimate.
- Automation & Motion Control: $422.2 million in net sales, above the $412.2 million estimate.
- Industrial Systems: $39.0 million in net sales, a 71% decline y/y, below the $54.4 million estimate.
- Adjusted operating margin improved to 13%, up from 12.7% y/y, exceeding the 12.4% estimate.
- Net income for Q2 rose to $62.5 million, a 95% increase y/y, although below the $69.3 million estimate.
- Adjusted free cash flow for the quarter was $136.4 million, with the company on track for a full-year outlook of approximately $700 million.
- Revised 2024 GAAP diluted EPS guidance to $3.70-$4.10, down from $3.97-$4.77.
- Analyst ratings: 8 buys, 1 hold, and 0 sells.
A look at Regal Rexnord Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Regal Rexnord Corporation, a company specializing in electric motors and controls, has received a positive long-term outlook based on Smartkarma Smart Scores. With strong scores in value, growth, and momentum, Regal Rexnord shows promising signs for future performance. The company’s focus on designing and manufacturing various electric products such as gearboxes, transmissions, and generators has positioned it well in the market. While the dividend and resilience scores are not as high, the overall outlook for Regal Rexnord looks optimistic, suggesting potential growth and value for investors in the long run.
Regal Rexnord Corporation, known for its electric motor and control offerings, has been rated favorably on the Smartkarma Smart Scores system. The company’s products cater to a wide range of customers, including distributors, original equipment manufacturers, and end users globally. With solid scores in value, growth, and momentum, Regal Rexnord demonstrates strengths that could fuel its future success. Although the dividend and resilience scores are more conservative, the overall outlook for the company appears bright, reflecting opportunities for expansion and performance improvement over time.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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