Regal Beloit shares rise after increased guidance

Regal Beloit shares rise after third-quarter earnings forecast increased

• On 11:12 am EDT, Friday October 9, 2009

NEW YORK (AP) -- Regal Beloit Corp. shares rose Friday after the maker of motion-control and power-generation equipment boosted its fiscal third-quarter guidance.

Regal Beloit said a lower effective tax rate, lower raw material costs, the sales mix of energy-efficient products and cost reductions drove its stronger outlook, prompting it to raise its earnings forecast to 80 cents to 85 cents a share for the three months ended Sept. 25.

Earlier, the company had said it expected earnings of 60 cents to 68 cents per share.

The company plans to report results on Nov. 2.

Several analysts responded by increasing their earnings estimates. Baird analyst Michael A. Schneider also boosted his price target to $56 from $54.

"Management exemplifies a passion for raising productivity and reducing costs," he said. "Expertise in lean manufacturing, global sourcing, and synergy savings should drive further margin improvements."

In late morning trading Friday, Regal Beloit shares rose $1.39, or 2.9 percent, to $48.63.