Industrials products and automation company Regal Rexnord (NYSE:RRX). will be reporting earnings tomorrow after market hours. Here's what to expect.
Regal Rexnord missed analysts' revenue expectations by 1.4% last quarter, reporting revenues of $1.55 billion, up 26.4% year on year. It was a weaker quarter for the company, with a miss of analysts' organic revenue 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 14.8% year on year to $1.51 billion, a reversal from the 31.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Regal Rexnord has missed Wall Street's revenue estimates five times over the last two years.
Looking at Regal Rexnord's peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Worthington's revenues decreased 13.6% year on year, missing analysts' expectations by 9.6%, and Flowserve reported revenues up 7.1%, topping estimates by 2.4%. Worthington traded down 3.4% following the results.
Read our full analysis of Worthington's results here and Flowserve's results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 10.2% on average over the last month. Regal Rexnord is up 17.8% during the same time and is heading into earnings with an average analyst price target of $192.8 (compared to the current share price of $155.76).
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