Tough End-Markets Temporarily Putting The Brakes On Regal Rexnord's Long-Term Growth Story
Q2 earnings were mixed with ongoing industrial and automation weakness, but aerospace, data center, and medical end-markets remain strong, and order trends seem to be improving. General industrial, discrete automation, and off-road machinery are likely to remain weak for at least a little longer, but industrial and automation markets should recover in 2025. Management has been leveraging capabilities in precision motion control to expand its opportunities in faster-growing markets like aerospace and biopharma, and repositioning core tech into faster-growing markets remains a driver.
Compared to Estimates, Regal Rexnord (RRX) Q2 Earnings: A Look at Key Metrics
While the top- and bottom-line numbers for Regal Rexnord (RRX) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Regal Rexnord (RRX) Q2 Earnings and Revenues Top Estimates
Regal Rexnord (RRX) came out with quarterly earnings of $2.29 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $2.56 per share a year ago.
Earnings Preview: Regal Rexnord (RRX) Q2 Earnings Expected to Decline
Regal Rexnord (RRX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Reviewing Regal Rexnord (RRX) and Its Competitors
Regal Rexnord (NYSE:RRX – Get Free Report) is one of 25 publicly-traded companies in the “General industrial machinery,” industry, but how does it weigh in compared to its peers? We will compare Regal Rexnord to related companies based on the strength of its risk, valuation, dividends, earnings, profitability, analyst recommendations and institutional ownership. Risk & Volatility Regal Rexnord has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Regal Rexnord’s peers have a beta of 1.29, indicating that their average share price is 29% more volatile than the S&P 500. Profitability This table compares Regal Rexnord and its peers’ net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Regal Rexnord -0.48% 9.42% 3.86% Regal Rexnord Competitors -284.51% -485.84% -29.16% Earnings and Valuation This table compares Regal Rexnord and its peers revenue, earnings per share and valuation. Gross Revenue Net Income Price/Earnings Ratio Regal Rexnord $6.25 billion -$57.40 million -332.67 Regal Rexnord Competitors $1.13 billion -$13.43 million -28.42 Regal Rexnord has higher revenue, but lower earnings than its peers. Regal Rexnord is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry. Analyst Ratings This is a breakdown of current ratings and recommmendations for Regal Rexnord and its peers, as provided by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Regal Rexnord 0 0 5 0 3.00 Regal Rexnord Competitors 95 261 374 8 2.40 Regal Rexnord presently has a consensus target price of $195.60, indicating a potential upside of 22.49%. As a group, “General industrial machinery,” companies have a potential upside of 5.56%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, equities analysts clearly believe Regal Rexnord is more favorable than its peers. Institutional & Insider Ownership 99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 47.1% of shares of all “General industrial machinery,” companies are held by institutional investors. 0.8% of Regal Rexnord shares are held by insiders. Comparatively, 13.6% of shares of all “General industrial machinery,” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth. Dividends Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 0.9%. Regal Rexnord pays out -291.7% of its earnings in the form of a dividend. As a group, “General industrial machinery,” companies pay a dividend yield of 0.8% and pay out 34.1% of their earnings in the form of a dividend. Regal Rexnord has raised its dividend for 19 consecutive years. Regal Rexnord is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio. Summary Regal Rexnord beats its peers on 10 of the 15 factors compared. About Regal Rexnord (Get Free Report) Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.
Analyzing Regal Rexnord (RRX) & The Competition
Regal Rexnord (NYSE:RRX – Get Free Report) is one of 25 public companies in the “General industrial machinery,” industry, but how does it contrast to its rivals? We will compare Regal Rexnord to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership. Institutional & Insider Ownership 99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 47.1% of shares of all “General industrial machinery,” companies are held by institutional investors. 0.8% of Regal Rexnord shares are held by company insiders. Comparatively, 13.6% of shares of all “General industrial machinery,” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term. Dividends Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 0.9%. Regal Rexnord pays out -291.7% of its earnings in the form of a dividend. As a group, “General industrial machinery,” companies pay a dividend yield of 0.8% and pay out 34.1% of their earnings in the form of a dividend. Regal Rexnord has increased its dividend for 19 consecutive years. Regal Rexnord is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio. Profitability This table compares Regal Rexnord and its rivals’ net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Regal Rexnord -0.48% 9.42% 3.86% Regal Rexnord Competitors -284.51% -485.84% -29.16% Risk and Volatility Regal Rexnord has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Regal Rexnord’s rivals have a beta of 1.29, suggesting that their average stock price is 29% more volatile than the S&P 500. Earnings and Valuation This table compares Regal Rexnord and its rivals revenue, earnings per share (EPS) and valuation. Gross Revenue Net Income Price/Earnings Ratio Regal Rexnord $6.25 billion -$57.40 million -332.67 Regal Rexnord Competitors $1.13 billion -$13.43 million -28.42 Regal Rexnord has higher revenue, but lower earnings than its rivals. Regal Rexnord is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry. Analyst Ratings This is a breakdown of recent ratings and target prices for Regal Rexnord and its rivals, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Regal Rexnord 0 0 5 0 3.00 Regal Rexnord Competitors 95 261 374 8 2.40 Regal Rexnord currently has a consensus price target of $195.60, suggesting a potential upside of 22.49%. As a group, “General industrial machinery,” companies have a potential upside of 5.56%. Given Regal Rexnord’s stronger consensus rating and higher possible upside, analysts clearly believe Regal Rexnord is more favorable than its rivals. Summary Regal Rexnord beats its rivals on 10 of the 15 factors compared. About Regal Rexnord (Get Free Report) Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.
