Jefferies raises Nvidia stock price target to $205 on strong demand
Investing.com -- Regal Rexnord (NYSE:ZWS) Corporation (NYSE:RRX) reported second-quarter adjusted earnings that exceeded analyst expectations, sending shares up 5% as the company demonstrated resilience despite mixed market conditions.
The power transmission and motion control products manufacturer posted adjusted earnings per share of $2.48, beating the analyst consensus of $2.44. Revenue came in at $1.5 billion, slightly above the consensus estimate of $1.49 billion, though down 3.3% compared to the same period last year. On an organic basis, sales declined 1.2% YoY.
The company’s stock jumped 5% following the announcement, as investors responded positively to the earnings beat and the company’s narrowed full-year guidance range of $9.70-$10.30 per share, with the midpoint of $10.00 slightly above the analyst consensus of $9.90.
"Our team delivered strong performance in second quarter, which was modestly ahead of our expectations on sales and earnings," said CEO Louis Pinkham. "While a number of macro-economic and geopolitical uncertainties persist, we are laser-focused on accelerating growth."
The Power Efficiency Solutions segment was a bright spot, with sales increasing 5.9% YoY to $435.2 million, driven by growth in residential and commercial HVAC markets. Meanwhile, Industrial Powertrain Solutions and Automation & Motion Control segments saw declines of 3.8% and 2.6% respectively.
Regal Rexnord also highlighted a $35 million data center order received in early July, with sales expected to begin by year-end. The company noted it is "well positioned to win significant additional content with this customer over the next 12 months."
Despite current tariff challenges, management stated that mitigation actions are on track to neutralize their impact on 2025 adjusted EBITDA and earnings. The company continues to expect adjusted free cash flow of $700 million, excluding proceeds from its new $400 million accounts receivable securitization facility, which contributed $368.5 million in the quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.