Regal Rexnord (NYSE:RRX) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Regal Rexnord reported Q2 earnings of $2.48 per share, beating estimates by $0.08, with a return on equity of 9.67% and a net margin of 3.96%.
• The company declared a quarterly dividend of $0.35 per share, with an annualized yield of 1.0% and a payout ratio of 39.89%.
• Brokerages have upgraded Regal Rexnord to "strong-buy" and revised price targets upward, with the average target price now at $185.25.

Regal Rexnord (NYSE:RRX - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $2.48 EPS for the quarter, topping the consensus estimate of $2.42 by $0.06, Zacks reports. Regal Rexnord had a return on equity of 9.67% and a net margin of 3.96%. The firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the company posted $2.29 EPS. The business's revenue for the quarter was down 3.3% compared to the same quarter last year. Regal Rexnord updated its FY 2025 guidance to 9.700-10.300 EPS.

Regal Rexnord Price Performance

Regal Rexnord stock opened at $145.52 on Wednesday. The company has a current ratio of 2.26, a quick ratio of 1.21 and a debt-to-equity ratio of 0.82. The company has a 50-day moving average price of $145.93 and a 200 day moving average price of $133.30. Regal Rexnord has a 12-month low of $90.56 and a 12-month high of $185.28. The stock has a market cap of $9.65 billion, a P/E ratio of 41.46, a PEG ratio of 1.49 and a beta of 1.18.

Regal Rexnord Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 30th. Regal Rexnord's payout ratio is currently 39.89%.

Insider Buying and Selling at Regal Rexnord

In related news, CEO Louis V. Pinkham sold 10,593 shares of the firm's stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $140.33, for a total transaction of $1,486,515.69. Following the completion of the sale, the chief executive officer directly owned 175,954 shares of the company's stock, valued at approximately $24,691,624.82. This trade represents a 5.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.82% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Regal Rexnord

Several hedge funds have recently bought and sold shares of RRX. AQR Capital Management LLC increased its position in shares of Regal Rexnord by 208.1% during the first quarter. AQR Capital Management LLC now owns 17,747 shares of the company's stock worth $2,011,000 after acquiring an additional 11,987 shares during the period. Jones Financial Companies Lllp grew its stake in Regal Rexnord by 91.6% during the 1st quarter. Jones Financial Companies Lllp now owns 617 shares of the company's stock worth $70,000 after purchasing an additional 295 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its stake in Regal Rexnord by 135.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company's stock worth $25,000 after purchasing an additional 127 shares in the last quarter. Institutional investors and hedge funds own 99.72% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Wall Street Zen upgraded Regal Rexnord from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 22nd. Citigroup restated a "buy" rating and set a $165.00 price target (up previously from $145.00) on shares of Regal Rexnord in a research note on Tuesday, June 24th. KeyCorp set a $180.00 price objective on shares of Regal Rexnord and gave the company an "overweight" rating in a report on Thursday, June 26th. The Goldman Sachs Group lifted their target price on shares of Regal Rexnord from $173.00 to $195.00 and gave the stock a "buy" rating in a research note on Tuesday, July 8th. Finally, Barclays boosted their target price on shares of Regal Rexnord from $160.00 to $165.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 9th. Eight equities research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $185.25.

Regal Rexnord Company Profile

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.