Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Milwaukee, Wisconsin based Rexnord Corporation (RXN - Analyst Report) recently completed scrutinizing its available options to enhance shareholders value, ending a program initiated by the board of directors on Feb 11, this year.

Rexnord operates in mainly two segments; viz., Process & Motion Control and Water Management. One of the strategic options Rexnord evaluated was whether to divest one or both of the segments. Another option that was weighed on was the possible sale of the entire company. Goldman Sachs Group Inc. (GS - Analyst Report) served as the financial adviser for the review.

The study concluded that the best option for Rexnord will be to continue to function as a stand-alone public company. Management believes that Rexnord’s expertise and experience will enable it to strengthen its market position and increase profitability in the long run.

The decision follows strong fiscal 2013 results, with earnings per share increasing by a penny year over year to 98 cents. Revenue also increased 3.1% year over year to $2.0 billion. This was mostly driven by acquisitions undertaken by the company. Adjusted EBITDA also increased 5.0% year over year to $405.0 million.

Moving forward, Rexnord expects earnings per share in fiscal 2014 to be in the range of $1.10-$1.18, signifying a year-over-year increase of 16.0% at the mid-point. Revenue is expected to experience an organic growth of 1%-3% in fiscal 2014.

Management believes that Rexnord’s shareholders will be benefited by the strategies currently adopted by the company as well as new alternatives planned to be undertaken.

Rexnord currently carries a Zacks Rank #3 (Hold). Other stocks to watch out for in the diversified machinery industry are AO Smith Corp. (AOS - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy); whereas Plug Power Inc. (PLUG - Snapshot Report) carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%