Regal Beloit

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Company Name	Symbol	%Change
STAAR SURGIC	STAA	10.98%
LUMOS NETWOR	LMOS	5.70%
INSTEEL IND	IIIN	5.28%
ERICKSON AIR	EAC	5.10%
ASSURED GUAR	AGO	4.98%

Company Name

Symbol

%Change

10.98%

5.70%

5.28%

5.10%

4.98%

Zacks Rank	Definition	Annualized Return
#1	Strong Buy	26.6%
#2	Buy	18.71%
#3	Hold	10.12%
#4	Sell	4.32%
#5	Strong Sell	2.16%
S&P	500	9.93%

Growth & Income

by Rob Plaza

May 26, 2010 | Comments : 0 Recommended this article: (0)

RBC

Regal Beloit Corporation (RBC - Snapshot Report) recently beat analyst estimates, and management issued bullish guidance for the second quarter.

Regal Beloit is a Zacks #1 Rank stock that trades at 14.8x 2010 EPS estimates and 12.9x 2011 EPS estimates.

Growth and Income

Analysts estimate that Regal Beloit will grow its earnings per share at 47.5% in 2010, 16.9% in 2011, and 14.5% per year for the next 3 to 5 years. Its stock also has a dividend yield of 1.1%.

Business

Regal Beloit Corporation manufactures and sells electrical and mechanical products to original equipment manufacturers, distributors, and end users.

Strong First-Quarter Results

On May 3, Regal Beloit reported net sales of $507.3 million, up 14.4% from the year-ago quarter. The company earned $0.98 per share, topping the Zacks Consensus Estimate by 16 cents, or 19.5%.

Company Outlook

Chairman and CEO Henry Knueppel said, "We remain cautious but optimistic about the markets we serve. Our expectations are for continued strength in Asia and a more muted recovery in North America and Europe."

Management indicated that its higher production levels coupled with its productivity efforts should more than offset commodity cost increases. As such, the company now expects second-quarter EPS of $0.96-$1.04.

Estimates

Analysts lifted their earnings estimates after Regal Beloit reported better-than-expected results for the first quarter. In the last month, the Zacks Consensus for 2010 is up 41 cents, or 11.8%, to $3.88, while the Zacks Consensus for 2011 is up 33 cents, or 7.9%, to $4.53.

The Chart

Regal Beloit shares are up 55% since bottoming in June 2009. The stock's ascent has been mostly choppy over the last year, and the current market turmoil is no exception. After topping out on May 3 at $65.47 (its closing high), the stock has declined 12.5%. It is now trading below its 50-day moving average, but is still above its 200-day moving average.