The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Regal Beloit met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Regal Beloit booked revenue of $727.0 million. The 12 analysts polled by S&P Capital IQ expected sales of $726.8 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $555.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.93. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share on the same basis. GAAP EPS of $0.79 for Q4 were 22% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.6%, 220 basis points better than the prior-year quarter. Operating margin was 10.9%, 280 basis points better than the prior-year quarter. Net margin was 4.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $821.6 million. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $3.37 billion. The average EPS estimate is $5.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 122 rating the stock outperform, and eight members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Regal Beloit a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regal Beloit is outperform, with an average price target of $65.30.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.