The 10-second takeaway
For the quarter ended June 29 (Q1), Rexnord beat expectations on revenues and 0 on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Gross margins contracted, operating margins shrank, net margins grew.
Rexnord logged revenue of $508.7 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $496.1 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $493.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.24. The eight earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. Non-GAAP EPS of $0.24 for Q1 were 9.1% higher than the prior-year quarter's $0.22 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were $0.14 for Q1 versus -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 35.8%, 40 basis points worse than the prior-year quarter. Operating margin was 12.3%, 120 basis points worse than the prior-year quarter. Net margin was 2.7%, 310 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $510.9 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $1.13.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rexnord is outperform, with an average price target of $21.20.
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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. 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.