According to Zacks, “Year to date, Regal Beloit's shares have outperformed the industry. We believe that solid product portfolio, productivity enhancement initiatives and policy of rewarding shareholders handsomely will work for the company in the quarters ahead. Also, the Nicotra Gebhardt buyout has been strengthening Regal Beloit's Commercial & Industrial Systems segment. For 2019, it anticipates adjusted earnings per share of $6.15-$6.55, reflecting growth from $6.00 in 2018. However, for 2019, the company revised organic sales growth projection between low to mid-single digit and a low-single digit. In addition, the company suffers from customer concentration risks, divestment issues and cyclical nature of business. Also, a highly leveraged balance sheet, with debts at $1.2 billion at the end of the first quarter, can inflate financial obligations and hurt profitability. Unfavorable movements in foreign currencies remain a concern.”
A number of other equities analysts have also recently issued reports on the stock. BMO Capital Markets cut their price objective on shares of Regal Beloit from $95.00 to $93.00 and set a “market perform” rating on the stock in a research report on Wednesday, May 8th. Royal Bank of Canada reissued a “hold” rating on shares of Regal Beloit in a research report on Tuesday, May 7th. Finally, Wells Fargo & Co upped their target price on shares of Regal Beloit from $75.00 to $85.00 and gave the stock a “market perform” rating in a report on Wednesday, February 6th. Seven analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. Regal Beloit has a consensus rating of “Hold” and a consensus target price of $92.50.
Regal Beloit (NYSE:RBC) last released its quarterly earnings data on Monday, May 6th. The industrial products company reported $1.43 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.41 by $0.02. The company had revenue of $853.80 million for the quarter, compared to analysts’ expectations of $882.61 million. Regal Beloit had a net margin of 7.15% and a return on equity of 11.24%. The business’s revenue was down 2.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.34 EPS. On average, analysts anticipate that Regal Beloit will post 6.37 earnings per share for the current fiscal year.
Several institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Regal Beloit in the fourth quarter worth approximately $47,865,000. Thrivent Financial for Lutherans raised its stake in shares of Regal Beloit by 2,513.8% in the 4th quarter. Thrivent Financial for Lutherans now owns 398,298 shares of the industrial products company’s stock valued at $27,958,000 after purchasing an additional 383,060 shares during the period. AJO LP raised its stake in shares of Regal Beloit by 465.7% in the 1st quarter. AJO LP now owns 446,457 shares of the industrial products company’s stock valued at $36,551,000 after purchasing an additional 367,540 shares during the period. Bank of Montreal Can raised its stake in shares of Regal Beloit by 152.3% in the 1st quarter. Bank of Montreal Can now owns 550,153 shares of the industrial products company’s stock valued at $45,040,000 after purchasing an additional 332,128 shares during the period. Finally, LSV Asset Management raised its stake in shares of Regal Beloit by 23.5% in the 4th quarter. LSV Asset Management now owns 1,712,551 shares of the industrial products company’s stock valued at $119,964,000 after purchasing an additional 325,400 shares during the period. Institutional investors own 93.73% of the company’s stock.
About Regal Beloit
Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
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