Tags: Regal | Beloit | firing | RBC

Regal Beloit Firing on Nearly All Pistons

By    |   Friday, 23 March 2012 01:22 PM

Electrical component and equipment maker Regal Beloit (RBC) is firing on nearly all pistons as several product niches log strong growth. 

Regal Beloit is one of the largest makers of electric motors worldwide. It offers more than 30 brand name products globally, including gearboxes, gear motors and high-performance auto transmissions. In 2011, 36 percent of Regal Beloit’s total net sales were outside the United States, versus 31.6 percent in 2010.

Sales have been surging. For fourth quarter 2011, Regal Beloit reported sales of $727 million, up 31 percent from $555.7 million a year ago. Quarterly net income was 93 cents per share, up from 65 cents.

For full-year 2011, sales were $2.8 billion, up 25.5 percent from $2.2 billion in 2010. Net income for 2011 was $4.71 per share, up from $3.84.

For 2012, Wall Street’s consensus earnings estimate is $5.15 per share. The 2013 earnings estimate is $5.86.

Few weaknesses

Acquisitions help fuel revenue growth. The company recently bought Milwaukee Gear, beefing up the mechanical unit. The Wisconsin firm has also logged strong sales in its commercial and industrial unit, along with the mechanical business. Only the HVAC unit has been weak, Regal Beloit CEO Mark Gliebe said in a statement.

Of the 13 analysts followed by Thomson/First Call, five have strong buy recommendations and two have buys, with six holds.

Jefferies analysts have a buy rating on Regal Beloit, citing a three-legged stool of earnings in commercial and industrial motors, HVAC and acquisitions.

The company next reports on May 7.

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Friday, 23 March 2012 01:22 PM
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