- Regal Rexnord has cut its full-year adjusted earnings per share (EPS) forecast to $9.60 to $10.40 from the previous prediction of $9.75 to $10.55.
- First-quarter adjusted EPS was $2.00, down from $2.22 year on year (y/y), but still beat the estimated forecast of $1.98.
- Net sales in the first quarter reached $1.55 billion, a 26% increase y/y, almost meeting the sales estimate of $1.56 billion.
- Net sales results for Regal Rexnord sector-specific performances varied: Industrial Powertrain Solutions saw net sales of $643.4 million surpassing the estimated $630.6 million. However, Power Efficiency Solutions net sales were at $385.3 million, shy of the $402.3 million estimate; similarly, Automation & Motion Control net sales came in at $400.2 million, less than the $407.4 million estimate.
- Industrial Systems saw particularly disappointing y/y net sales results, falling 13% y/y to $118.8 million, significantly lower than the $132.7 million estimated.
- Adjusted operating margin for the first quarter registered 11.7% in comparison to 11.6% y/y and surpassed the 11.2% estimate.
- First quarter net income was $19.8 million, a substantial improvement from a loss of $5.9 million y/y, but fell short of the $71.5 million estimate.
- The company has achieved an adjusted free cash flow of $64.6 million and is still on track to its full year outlook of $700 million.
- Regal Rexnord also updated its annual guidance for 2024 GAAP (Generally Accepted Accounting Principles) Diluted Earnings per Share to a predicted range of $3.97 to $4.77.
- In terms of popularity among the investment community, Regal Rexnord is garnering attention with 8 buys, 0 holds, and 0 sells.
A look at Regal Rexnord Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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 the design and manufacture of electric motors and controls, appears to have a favorable long-term outlook based on the Smartkarma Smart Scores. With a strong momentum score of 4, indicating positive market trends, Regal Rexnord shows promise for future growth. Although the company’s value, dividend, growth, and resilience scores are moderate, the high momentum score suggests potential for increased performance in the future.
Regal Rexnord Corporation, known for its diverse portfolio of products including gearboxes, automotive transmissions, cutting tools, transfer switches, and electric generators, caters to a global market of distributors, original equipment manufacturers, and end users. The company’s Smartkarma Smart Scores reflect a balanced outlook across various factors, with a notable strength in momentum. This indicates that Regal Rexnord may be well-poised to capitalize on market opportunities and potentially drive competitive performance in the long term.
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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