The 10-second takeaway
For the quarter ended March 31 (Q4), Rexnord met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share contracted. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Rexnord reported revenue of $540.3 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $542.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The seven earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.32 for Q4 were 8.6% lower than the prior-year quarter's $0.35 per share. GAAP EPS of $0.24 for Q4 were 100% higher than the prior-year quarter's $0.12 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 36.7%, 10 basis points worse than the prior-year quarter. Operating margin was 14.3%, 60 basis points better than the prior-year quarter. Net margin was 4.4%, 280 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $512.7 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $1.10.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rexnord is hold, with an average price target of $21.80.
Looking for alternatives to Rexnord? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Rexnord to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.
More from The Motley Fool
Why Rexnord Corp.'s Shares Plunged 18% Today
Quarterly earnings from Rexnord Corp. didn't leave investors very inspired today.
Why Rexnord Corp.'s Shares Popped 13% Today
An analyst upgrade helped push shares of Rexnord Corp. higher today.
Why Rexnord Corp's Shares Plunged 11% Today
Slow growth is dragging down this industrial manufacturer today.