Industrials products and automation company Regal Rexnord (NYSE: RRX) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Regal Rexnord beat analysts’ revenue expectations last quarter, reporting revenues of $1.48 billion, up 4.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ EBITDA estimates.
Is Regal Rexnord a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Regal Rexnord’s revenue to grow 5.3% year on year, a reversal from the 3.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Regal Rexnord has missed Wall Street’s revenue estimates multiple 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. RBC Bearings delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 2.1%, and Gates Industrial Corporation reported revenues up 6.6%, topping estimates by 1.7%. RBC Bearings traded up 1.5% following the results while Gates Industrial Corporation was also up 14%.
Read our full analysis of RBC Bearings’s results here and Gates Industrial Corporation’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average 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 $262.60 (compared to the current share price of $217.14).
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