Regal Rexnord (RRX) Q4 Earnings Preview: Key Points to Watch

Regal Rexnord Set to Announce Earnings

Regal Rexnord (NYSE:RRX), a leader in industrial products and automation, is scheduled to release its latest earnings report this Wednesday after market close. Here’s what investors should keep an eye on.

Recent Performance Overview

In the previous quarter, Regal Rexnord matched Wall Street’s revenue projections, posting $1.50 billion in sales—a modest 1.3% increase compared to the same period last year. However, the company faced challenges, as its full-year earnings per share guidance fell short of analyst forecasts, and adjusted operating income also missed expectations.

Should You Buy or Sell Before Earnings?

Wondering if Regal Rexnord is a smart move ahead of its earnings release?

Expectations for This Quarter

Analysts anticipate that Regal Rexnord’s revenue will rise 5.5% year-over-year to reach $1.54 billion, marking a turnaround from the 9.1% decline seen in the same quarter last year. Adjusted earnings per share are forecasted at $2.48.

Analyst Sentiment and Track Record

Over the past month, most analysts have maintained their estimates, indicating expectations for steady performance as earnings approach. Notably, Regal Rexnord has fallen short of revenue estimates four times in the last two years.

Industry Peers: Recent Results

Several companies in the industrial machinery sector have already shared their fourth-quarter results, offering some context for Regal Rexnord’s upcoming report. Applied Industrial saw its revenue grow by 8.4% year-over-year but missed analyst expectations by 0.7%, while GE Aerospace posted a 17.6% increase, surpassing forecasts by 13.9%. Following these announcements, Applied Industrial’s stock dropped 9%, and GE Aerospace’s shares declined by 7.7%.

Investor Sentiment and Price Targets

The industrial machinery sector has seen positive momentum, with average share prices climbing 7.1% over the past month. Regal Rexnord has outperformed, rising 15.1% in the same period. Analysts currently have an average price target of $180 for the stock, compared to its recent price of $171.70.

Spotlight: Share Buybacks and Value Opportunities

When companies have surplus cash, repurchasing their own shares can be a strategic move—especially if the stock is undervalued. We’ve identified a promising, low-priced company generating strong free cash flow and actively buying back shares.