Regal Beloit Earnings: Here’s Why the Stock is Down Now

Regal Beloit Corporation (NYSE:RBC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.06%.

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Regal Beloit Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.9% to $1.08 in the quarter versus EPS of $1.16 in the year-earlier quarter.

Revenue: Decreased 3.68% to $778.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Regal Beloit Corporation reported adjusted EPS income of $1.08 per share. By that measure, the company missed the mean analyst estimate of $1.15. It missed the average revenue estimate of $804.27 million.

Quoting Management: “In the first quarter of 2013, Regal’s end markets were mixed. While the U.S. residential market grew in line with expectations, the U.S. commercial and industrial markets did not perform as well as we had expected earlier in the year. Our North American HVAC sales were up 3.5% in the quarter and sales in our Unico business remained strong,” said Regal Chairman and CEO Mark Gliebe. “In spite of the top line challenges the teams executed well on our synergy and simplification initiatives, allowing us to maintain operating margins,” continued Mark Gliebe.

Key Stats (on next page)…

Revenue increased 8.75% from $715.6 million in the previous quarter. EPS increased 42.11% from $0.76 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.6 to a profit $1.61. For the current year, the average estimate has moved up from a profit of $5.15 to a profit of $5.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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