Rexnord Corporation yesterday discussed preliminary results for the fourth quarter and fiscal 2020 (ended March 2020). Additionally, the company noted that the coronavirus outbreak is likely to adversely impact demands for its products in the near term.
It expects to release the final results on (or about) May 13.
The company’s share price increased 6.23% yesterday, ending the trading session at $24.20.
Inside the Headlines
For fiscal 2020, Rexnord anticipates net sales of $2.068 billion, suggesting year-over-year growth of 1%. Core sales for the year will likely be up 1% from the previous fiscal year’s reported figure.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) are likely to be $460 million, suggesting a $17-million increase from $443 million reported in fiscal 2019 (ended March 2019). In addition, free cash flow will likely increase 20% year over year to $255 million.
Exiting the year, the company’s debt (net) leverage ratio is predicted to be 1.9. Its available cash will likely be $575 million.
For the fiscal fourth quarter, sales are anticipated to increase 2% year over year to $547 million, with core sales growing 1%. Adjusted EBITDA will likely be $124 million, up from $120 million reported in the year-ago quarter.
The company has also noted that it initiated certain cost-saving actions to deal with the uncertainties related to the pandemic. Also, it has temporarily stopped its share buybacks, while continues with its dividend plans.
Zacks Rank, Earnings Estimates and Price Performance
Rexnord, with a market capitalization of $2.8 billion, currently carries a Zacks Rank #4 (Sell). In the past three months, the company’s shares have moved down 24.6% compared with the industry’s decline of 27.9%.
The Zacks Consensus Estimate for its earnings per share is pegged at $1.97 for fiscal 2020 (ended March 2020; results are awaited) and $1.79 for fiscal 2021 (ending March 2021), reflecting declines of 0.5% and 14.8% from the respective 60-day-ago figures.
Rexnord Corporation Price and Consensus
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Rexnord Corporation yesterday discussed preliminary results for the fourth quarter and fiscal 2020 (ended March 2020). Additionally, the company noted that the coronavirus outbreak is likely to adversely impact demands for its products in the near term.
It expects to release the final results on (or about) May 13.
The company’s share price increased 6.23% yesterday, ending the trading session at $24.20.
Inside the Headlines
For fiscal 2020, Rexnord anticipates net sales of $2.068 billion, suggesting year-over-year growth of 1%. Core sales for the year will likely be up 1% from the previous fiscal year’s reported figure.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) are likely to be $460 million, suggesting a $17-million increase from $443 million reported in fiscal 2019 (ended March 2019). In addition, free cash flow will likely increase 20% year over year to $255 million.
Exiting the year, the company’s debt (net) leverage ratio is predicted to be 1.9. Its available cash will likely be $575 million.
For the fiscal fourth quarter, sales are anticipated to increase 2% year over year to $547 million, with core sales growing 1%. Adjusted EBITDA will likely be $124 million, up from $120 million reported in the year-ago quarter.
The company has also noted that it initiated certain cost-saving actions to deal with the uncertainties related to the pandemic. Also, it has temporarily stopped its share buybacks, while continues with its dividend plans.
Zacks Rank, Earnings Estimates and Price Performance
Rexnord, with a market capitalization of $2.8 billion, currently carries a Zacks Rank #4 (Sell). In the past three months, the company’s shares have moved down 24.6% compared with the industry’s decline of 27.9%.
The Zacks Consensus Estimate for its earnings per share is pegged at $1.97 for fiscal 2020 (ended March 2020; results are awaited) and $1.79 for fiscal 2021 (ending March 2021), reflecting declines of 0.5% and 14.8% from the respective 60-day-ago figures.
Rexnord Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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