The 10-second takeaway
For the quarter ended June 29 (Q2), Regal Beloit met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.
Gross margins were steady, operating margins contracted, net margins contracted.
Regal Beloit reported revenue of $822.0 million. The 12 analysts polled by S&P Capital IQ anticipated net sales of $819.2 million on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $863.9 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 $1.13. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.24 per share. GAAP EPS of $1.13 for Q2 were 24% lower than the prior-year quarter's $1.49 per share.
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 25.5%, much about the same as the prior-year quarter. Operating margin was 9.9%, 210 basis points worse than the prior-year quarter. Net margin was 6.2%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $788.0 million. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $3.12 billion. The average EPS estimate is $4.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 119 members out of 127 rating the stock outperform, and eight members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Regal Beloit a green thumbs-up, and one give 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 $73.73.
If you're interested in companies like Regal Beloit, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add Regal Beloit 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. 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.