Back to top

Analyst Blog

Rexnord Corporation (RXN - Analyst Report) reported earnings per share, adjusted for one-time items, of 31 cents for the second quarter of fiscal 2014 (ended Sep 28, 2013). Results were 7 cents above 24 cents earned in the year-ago quarter and also surpassed the Zacks Consensus Estimate of 26 cents per share.

Including one-time adjustments, the company reported loss per share of 54 cents compared with earnings per share of 19 cents reported in the year-ago quarter.


Rexnord’s net sales increased 3.0% year over year to $514.5 million in the second quarter. The increase can be attributed to healthy performance at the company’s business segments.

Process & Motion Control sales in the quarter increased 0.9% to $311.8 million while sales at Water Management business were $202.7 million, up 6.5% year over year.  


Cost of sales in the second quarter increased 3.1% year over year and represented 62.7% of total revenue; up from 62.6% in the year-ago quarter. Gross margin came in at 37.3%. Selling, general and administrative expenses, as a percentage of total revenue, stood at 20.5%.

Balance Sheet

Exiting the second quarter of fiscal 2014, Rexnord’s cash and cash equivalents stood at $206.4 million, down compared with $334.9 million in the previous quarter. Long-term debt registered a slight sequential decline and came in at $1,952.2 million at the end of the quarter.
Cash Flow

In the second quarter of fiscal 2014, Rexnord generated $36.4 million cash from operating activities as compared with $46.4 million generated in the year-ago quarter. Capital spending compared with the year-ago quarter declined and totaled $11.4 million in the quarter.


For full fiscal year 2014, management of Rexnord has raised its earnings per share guidance to $1.32-$1.38 from $1.12-$1.18 expected earlier.

For the third quarter of fiscal 2014, sales are anticipated to be within $495-$505 million and adjusted earnings per share within 29-32 cents range.

Rexnord Corporation is a well-known mechanical components manufacturer and currently has a $2.1 billion market capitalization. The stock currently has a Zacks Rank #2 (Buy). Other stocks to watch out for are AO Smith Corp. (AOS - Snapshot Report) and Nidec Corporation (NJ - Snapshot Report), each with a Zacks Rank #1 (Strong Buy) while EnerSys (ENS - Snapshot Report) carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

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 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
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%