Post Earnings Coverage as Regal Beloit’s Q1 Adjusted EPS Grew 12.6% Y-o-Y

Upcoming AWS Coverage on John Bean Technologies Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Regal Beloit Corp. (NYSE: RBC). The Company disclosed its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 08, 2017. The Beloit, Wisconsin-based Company’s adjusted diluted EPS grew 12.6% y-o-y, beating market consensus estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Regal Beloit’s competitors within the Diversified Machinery space, John Bean Technologies Corp. (NYSE: JBT), reported on April 25, 2017, its results for the first quarter of 2017. AWS will be initiating a research report on John Bean Technologies in the coming days.

Today, AWS is promoting its earnings coverage on RBC; touching on JBT. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the quarter ended on April 01, 2017, Regal Beloit reported net sales of $813.5 million, which came in 0.6% below the $818.2 million recorded at the end of Q1 FY16. However, net sales numbers for the reported quarter outperformed market expectations of $809.9 million. The Company attributed the fall in net sales to a 0.6% foreign currency translation headwinds and a negative 0.6% impact of divestiture. Meanwhile, the Company’s adjusted net sales grew 0.7% to $823.7 million in Q1 FY17 from $818.2 million in the prior year’s same quarter.

The electric motors’ control maker reported GAAP net income attributable to Regal Beloit of $46.3 million, or $1.02 per diluted share, in Q1 FY17 compared to $41.6 million, or $0.93 per diluted share, in Q1 FY16. The Company’s adjusted diluted earnings per share increased to $1.07 in Q1 FY17 from $0.95 in Q1 FY16. Wall Street had expected the Company to report adjusted diluted earnings of $0.96 per diluted share.

Operating Metrics

In Q1 FY17, the Company’s gross profit fell marginally to $215.6 million from $217.4 million in the prior year’s comparable quarter. For Q1 FY17, the Company’s GAAP income from operations came in at $74.8 million, or 9.2% of net sales, compared to $69.3 million, or 8.5% of net sales. Furthermore, the Company’s adjusted income from operations for the reported quarter improved to $77.8 million, or 9.6% of net sales, from $70.7 million, or 8.6% of net sales, in Q1 FY16.

Segment Performance

During Q1 FY17, Commercial and Industrial Systems segment’s net sales grew 1% y-o-y to $381.2 million. The segment’s GAAP operating margin for the reported quarter came in at 6.8% versus 5.7% in the prior year’s same quarter. Excluding restructuring and related costs of $1.7 million, the segment’s adjusted operating margin stood at 7.2% in Q1 FY17 versus 5.8% in Q1 FY16.

Regal Beloit’s Climate Solutions segment’s net sales were $247.7 million in Q1 FY17, up 3.3% from the last year’s recorded net sales numbers $239.8 million. The segment’s GAAP operating margin was 12.6% in Q1 FY17 compared to 10.3% in the year ago corresponding quarter. Furthermore, excluding restructuring and related costs of $1.1 million, adjusted operating margin increased to 13.0% in Q1 FY17 from 10.8% in the previous year’s comparable quarter.

Power Transmission Solutions segment reported net sales of $184.6 million in Q1 FY17, falling 8.1% from $200.8 million in Q1 FY16. The segment’s GAAP operating margin during Q1 FY17 was 9.6% compared to 11.5% in Q1 FY16. Meanwhile, excluding restructuring and related costs of $0.4 million, the segment’s adjusted operating margin for the reported quarter was 9.8%, versus 11.5% in the last year’s comparable quarter.

Cash Flow & Balance Sheet

For the three months ended April 01 2017, Regal Beloit reported net cash flow provided by operating activities of $50.5 million compared to $58.6 million in the year ago comparable period. Moreover, free cash flow in the reported quarter was $33.5 million versus $43.7 million in Q1 FY16. The Company had cash and cash equivalents balance of $262.3 million as on April 01, 2017 compared to $284.5 million at the close of books on December 31, 2016. Furthermore, the Company ended the year with total long-term debt of $1.27 billion versus $1.31 billion as on December 31, 2016.

Dividend

In a separate press release on May 01, 2017, Regal Beloit’s Board of Directors hiked quarterly cash dividend by 8% to $0.26 per share. The dividend is payable on July 14, 2017, to shareholders of record at the close of business on June 30, 2017. This dividend marked the Company’s 228th consecutive quarterly dividend and is the 8th consecutive annual increase.

Outlook

In its guidance for full year FY17, Regal Beloit expects positive organic sales growth. The Company revised its adjusted diluted earnings per share forecast by $0.05 to a range of $4.55 to $4.95. Furthermore, the Company anticipates GAAP diluted earnings per share of $4.40 to $4.80 for full year FY17.

Stock Performance

Regal Beloit’s share price finished last Friday’s trading session at $78.45, slightly up by 0.97%. A total volume of 203.11 thousand shares exchanged hands. The stock has rallied 14.37% and 48.19% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have surged 13.66%. The stock is trading at a PE ratio of 16.97 and has a dividend yield of 1.33%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 463839