Industrials products and automation company Regal Rexnord (NYSE: RRX). will be reporting results this Tuesday after the bell. Here’s what investors should know.
Regal Rexnord beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.42 billion, down 8.4% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
Is Regal Rexnord a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Regal Rexnord’s revenue to decline 3.4% year on year to $1.50 billion, improving from the 12.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.44 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 10 analysts). Regal Rexnord has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Regal Rexnord’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Arrow Electronics delivered year-on-year revenue growth of 10%, beating analysts’ expectations by 5.9%, and Worthington reported flat revenue, topping estimates by 5.6%. Arrow Electronics traded down 11.7% following the results while Worthington was up 1.8%.
Read our full analysis of Arrow Electronics’s results here and Worthington’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices flat over the last month. Regal Rexnord’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $180.10 (compared to the current share price of $149.19).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
