We issued an updated research report on Rexnord Corporation (RXN - Free Report) on Nov 26.
The company, with a market capitalization of $3.3 billion, currently carries a Zacks Rank #3 (Hold). It provides solutions related to water management, and process and motion control.
Many tailwinds and headwinds are impacting its performance. Let’s delve deeper.
Factors Favoring Rexnord
Share Price Performance and Earnings Estimate Trend: The company’s shares outperformed the industry in the past three months. This reflects that market sentiment seems to be working in its favor. Its shares have gained 24.1% compared with the industry’s growth of 20.2%.
Notably, the company reported better-than-expected results in the second quarter of fiscal 2020 (ended Sep 30, 2019), with earnings surpassing estimates by 8.5%. It has positive earnings surprise of 12.13%, on average, for the last four quarters.
For fiscal 2020 (ending March 2020), the company will gain from acquired assets, strong operational execution through Rexnord Business System, supply-chain optimization and footprint-repositioning programs (SCOFR), and leverage reduction. It anticipates net income (from continuing operations) of $184-$189 million for fiscal 2020.
In addition, earnings estimates for Rexnord have been raised in the past 30 days. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.98 for 2019 and $2.18 for 2020, suggesting growth of 2.1% and 1.9% from the respective 30-day-ago figures.
Rexnord Corporation Price and Consensus