NYSE$RRX

Regal Rexnord Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Regal Rexnord pre-released selected financial measures for Q3 2022 and announced the acquisition of Altra Industrial Motion.

Regal Rexnord pre-released selected anticipated third quarter 2022 financial measures, including net sales of $1,325.3 million and adjusted diluted earnings per share of $2.66. The company also announced a definitive agreement to acquire Altra Industrial Motion for $62.00 per share in an all-cash transaction.

  • Regal Rexnord to acquire Altra Industrial Motion in an all-cash transaction for $62.00 per share.
  • Transaction values Altra at $4.95 billion, representing 13.6x LTM Adjusted EBITDA.
  • Regal Rexnord expects 2022 pro forma revenue of ~$7.2 billion with the addition of Altra.
  • Preliminary third quarter 2022 net sales were $1,325.3 million, and adjusted diluted earnings per share were $2.66.

Headline financials

Total Revenue

$1.33B

Previous: $893M+48.5%
EPS (adj)

$2.66

Previous: $2.36+12.7%
Capital Expenditures

-$22M

Previous: -$13.2M-66.7%
Free Cash Flow

$97.8M

Previous: $56.3M+73.7%
Net Income

$120M

Previous: $69.5M+72.4%
Operating Income

$174M

Previous: $107M+61.9%
Gross Profit

$408M

Previous: $255M+60.1%
Cash & Equivalents

$724M

No prior period
Total Assets

$10.2B

Previous: $4.49B+128.5%
Stock-Based Comp

$5.8M

No prior period

Revenue & EPS history

Regal Rexnord · Revenue · Quarterly

$1.33B

Q3 2022+48.5%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Regal Rexnord · $1.52B total across 3 segments · Q3 2023

  • Industrial Powertrain
    $641M
  • Power Efficiency
    $461M
  • Automation & Motion
    $420M

Forward guidance

For the full year of 2022, Regal Rexnord now expects adjusted diluted earnings per share to be in a range of $10.35 to $10.75, which contemplates, among other factors, expected net interest expense of $66 million vs. $50 million expected previously. This and other guidance from Regal Rexnord does not reflect any costs, expenses or other effects of the transaction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.9%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+13.6%

Q1 2025

Best reaction

-15.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+0.3%-0.5%
Q4 2025+12.2%+24.9%+4.6%
Q3 2025-3.7%-10.2%-3.1%
Q1 2025+13.6%+21.7%+25.5%
Q4 2024-7.9%-12.5%-20.9%
Q3 2024-0.6%+3.6%+2.3%
Q2 2024+2.8%-7.4%+5.9%
Q1 2024-4.8%-2.4%-13.6%
Q4 2023+7.6%+12.2%+25.9%
Q3 2023-15.9%-14.5%+5.0%
Q2 2023+7.6%+3.7%+4.3%
Q1 2023-2.2%-2.3%+6.2%
Q4 2022+12.2%+12.2%+16.4%
Q3 2022-12.2%-21.0%-14.8%
Q2 2022-0.6%+1.8%+2.4%
Q1 2022-2.7%-2.7%-6.3%
Q4 2020-1.6%-4.6%-5.0%
Q3 2021+8.2%+9.2%+6.7%
Q2 2021+3.8%+4.0%+1.0%
Q1 2021-1.5%-1.6%-6.8%
Q3 2020+4.4%+8.0%+12.0%
Q2 2020+0.1%+2.0%+2.6%
Q1 2020+3.4%+4.4%+16.0%
Q4 2019-4.0%-2.7%-28.8%
Q3 2019+0.5%-0.3%+1.0%
Q2 2019+1.4%+0.2%-0.0%
Q1 2019+2.2%+2.7%+3.7%
Q4 2018-1.3%-0.5%-4.6%
Q3 2018+0.8%-0.4%-0.2%
Q2 2018-0.9%-2.2%+1.3%
Q1 2018-3.9%+0.3%-2.9%
Q4 2017-3.5%-6.9%-2.1%
Q3 2017-5.4%-4.2%-6.6%
Q2 2017-4.7%-6.5%-11.9%
Q1 2017-0.7%+1.3%+4.8%
Q4 2016+0.9%+0.7%+1.6%
Q3 2016+6.1%+7.7%+16.4%
Q2 2016+2.3%+3.6%-4.4%
Q1 2016-1.2%
Q3 2015-3.8%
Q2 2015-0.0%
Q1 2015+0.4%
Q4 2013-1.1%
Q4 2015-1.1%
Q3 2014+0.6%
Q2 2014-0.8%
Q1 2014+2.0%
Q3 2013-0.4%
Q2 2013-0.2%
Q1 2013-2.1%
Q4 2012+0.8%
Q4 2010+0.8%
Q3 2012-3.1%
Q2 2012+1.9%
Q1 2012-0.4%
Q4 2011-1.1%
Q3 2011+0.7%
Q2 2011-1.4%
Q1 2011+3.2%
Q4 2008+3.2%
Q3 2010-1.1%
Q3 2009-1.1%
Q2 2009-1.2%
Q2 2010-1.2%
Q1 2010-1.2%

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