Earnings Review and Free Research Report: Regal Beloit Adjusted EPS Increased 13.2%
Research Desk Line-up: CVD Equipment Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Regal Beloit Corp. (NYSE: RBC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RBC, following the Company's release of its financial results for the second quarter fiscal 2017 on August 07, 2017. The Company's revenue increased 3.6% on a y-o-y basis and exceeded analysts' estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected CVD Equipment Corporation (NASDAQ: CVD) for due-diligence and potential coverage as the Company announced on August 14, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on CVD Equipment when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RBC; also brushing on CVD. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For three months ended July 01, 2017, Regal Beloit's revenue increased 3.6% basis to $869.2 million on a y-o-y from $838.6 million in Q2 FY16. The revenue surpassed analysts' expectations of $853 million.
During Q2 FY17, Regal Beloit's gross profit increased 4 basis points to $223 million from $222.9 million in the same quarter last year. During Q2 FY17, the Company's operating margin decreased 90 basis points to 25.7% of revenue from 26.6% of revenue in Q2 FY16.
During Q2 FY17, Regal Beloit's operating income decreased 9.2% to $83 million from $91.4 million in the same quarter last year. During Q2 FY17, the Company's operating margin decreased 140 basis points to 9.5% of revenue from 10.9% of revenue in Q2 FY16.
For the reported quarter, Regal Beloit's net income decreased 6.4% to $53 million on a y-o-y basis from $56.6 million in Q2 FY16. During Q2 FY17, the Company's diluted EPS decreased 6.3% to $1.18 on a y-o-y basis from $1.26 in Q2 FY16. During Q2 FY17, Regal Beloit's adjusted diluted EPS increased 13.2% to $1.29 on a y-o-y basis from $1.14 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $1.28.
On July 26, 2017, Regal Beloit declared a dividend of $0.26 per share payable on October 13, 2017, to shareholders of record at the close of business on September 29, 2017.
Regal Beloit's Segment Details
Commercial & Industrial Systems - During Q2 FY17, the Commercial & Industrial Systems segment's revenue increased 3.2% to $407.4 million from $394.7 million in Q2 FY16. For the reported quarter, the segment's organic sales growth was 4.3% compared to negative 9% in Q2 FY16. During Q2 FY17, the segment's operating margin decreased 130 basis points to 5.1% of revenue from 6.4% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating margin increased 20 basis points to 6.7% of revenue from 6.5% of revenue in Q2 FY16.
Climate Solutions - During Q2 FY17, the Climate Solutions segment's revenue increased 6.3% to $270.5 million from $254.5 million in Q2 FY16. For the reported quarter, the segment's organic sales growth was 6.5% compared to negative 10.4% in Q2 FY16. During Q2 FY17, the segment's operating margin increased 70 basis points to 14.9% of revenue from 14.2% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating margin increased 70 basis points to 15.1% of revenue from 14.4% of revenue in Q2 FY16.
Power Transmission Solutions
During Q2 FY17, Regal Beloit's Power Transmission Solutions segment's revenue increased 1% to $191.3 million from $189.4 million in Q2 FY16. For the reported quarter, the segment's organic sales growth was 3.5% compared to negative 10.9% in Q2 FY16. During Q2 FY17, the segment's operating income decreased 440 basis points to 11.6% of revenue from 16% of revenue in Q2 FY16. During Q2 FY17, the segment's adjusted operating margin increased 160 basis points to 11.7% of revenue from 10.1% of revenue in Q2 FY16.
Balance Sheet
As on July 01, 2017, Regal Beloit's cash and cash equivalents decreased 14.3% to $243.7 million from $284.5 million in Q4 FY16. During Q2 FY17, the Company's inventories increased 5.7% to $698.2 million from $660.8 million in Q4 FY16.
During Q2 FY17, the Company's long-term debt was $1.20 billion compared to $1.31 billion in Q4 FY16. During Q2 FY17, Regal Beloit's cash provided by operating activities decreased 16.3% to $98.4 million from $117.5 million in Q2 FY16.
During Q2 FY17, the Company's free cash flow was $81.7 million compared to $100.7 million in Q2 FY16. During Q2 FY17, Regal Beloit repurchased $21 million of common stock.
Outlook
For FY17, Regal Beloit estimates diluted EPS to be in the range of $4.51-$4.81 and adjusted diluted EPS to be in the range of $4.70-$5.00.
The Company expects the effective tax rate to be 22% for fiscal 2017.
Stock Performance
On Thursday, August 24, 2017, the stock closed the trading session at $72.80, dropping 2.93% from its previous closing price of $75.00. A total volume of 377.48 thousand shares have exchanged hands, which was higher than the 3-month average volume of 262.64 thousand shares. Regal Beloit's stock price rallied 15.65% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.13%. The stock is trading at a PE ratio of 16.04 and has a dividend yield of 1.43%. At Thursday's closing price, the stock's net capitalization stands at $3.26 billion.
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