Regal Beloit Crushes Earnings Estimates
Regal Beloit (NYS: RBC) filed its 10-K on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Regal Beloit met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Regal Beloit booked revenue of $727.0 million. The 12 analysts polled by S&P Capital IQ expected sales of $726.8 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $555.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.93. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share on the same basis. GAAP EPS of $0.79 for Q4 were 22% higher than the prior-year quarter's $0.65 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 25.6%, 220 basis points better than the prior-year quarter. Operating margin was 10.9%, 280 basis points better than the prior-year quarter. Net margin was 4.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $821.6 million. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $3.37 billion. The average EPS estimate is $5.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 122 rating the stock outperform, and eight members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Regal Beloit a green thumbs-up, and one gives 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 $65.30.
Over the decades, small-cap stocks like Regal Beloit have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Regal Beloit to My Watchlist.
At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.