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Rexnord (RXN) Provides Preliminary Results for Q4 & FY20
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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.
Current-year earnings estimates for both ESCO Technologies and Schneider Electric have improved and remained unchanged for Broadwind Energy over the past 60 days.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Rexnord (RXN) Provides Preliminary Results for Q4 & FY20
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
Rexnord Corporation price-consensus-chart | Rexnord Corporation Quote
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are ESCO Technologies Inc. (ESE - Free Report) , Schneider Electric S.E. (SBGSY - Free Report) and Broadwind Energy, Inc. (BWEN - Free Report) . While both ESCO Technologies and Schneider Electric sport a Zacks Rank #1 (Strong Buy), Broadwind Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Current-year earnings estimates for both ESCO Technologies and Schneider Electric have improved and remained unchanged for Broadwind Energy over the past 60 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>