Regal Beloit (RBC) Q4 Earnings In Line, Revenues Up Y/Y
Zacks Investment Research | Feb 05, 2018 09:44PM ET
Industrial goods manufacturer Regal Beloit Corporation (NYSE:RBC) reported decent fourth-quarter 2017 results, on the back of modest organic growth and positive order trends. On a GAAP basis, the company reported a net income of $51.5 million or $1.15 per share compared with $45.6 million or $1.01 per share in the year-earlier quarter. The significant year-over-year improvement was backed by higher revenues.
In the reported quarter, adjusted earnings were $1.14 per share compared with $1.04 in the year-ago quarter. The figure improved considerably year over year and came in line with the Zacks Consensus Estimate.
For 2017, Regal Beloit recorded GAAP earnings of $213 million or $4.74 per share compared with $203.4 million or $4.52 per share in 2016. Adjusted earnings for 2017 were $4.87 per share compared with $4.44 in the previous year.
Net sales increased to $820.7 million from $758.1 million in the year-earlier quarter, largely driven by organic growth across all segments. Moreover, quarterly revenues beat the Zacks Consensus Estimate of $790 million. For 2017, the company recorded net sales of $3,360.3 million compared with $3,224.5 million in 2016.
GAAP operating income improved to $78.3 million from $70.1 million in the prior-year quarter. Adjusted operating income was $79.5 million compared with $72.2 million in the year-ago quarter. Adjusted operating margin came in at 9.7%, up 20 basis points compared with the prior-year quarter.
Segmental Analysis
Revenues from the Power Transmission Solutions segment increased 13.2% year over year to $196.6 million. Sales were driven by rise in demand in the oil & gas and renewable energy end markets and in the distribution channel.However, GAAP operating margin decreased to 12.2% from 13% in the prior-year quarter.
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