Stock Monitor: Flowserve Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free earnings report on Rexnord Corp. (NYSE: RXN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=RXN. The Company reported its third quarter fiscal 2018 operating and financial results on January 31, 2018. The motion control and water management Company exceeded top- and bottom-line expectations, and provided guidance for the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Flowserve Corporation (NYSE: FLS), which also belongs to the Industrial Goods sector as the Company Rexnord. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Rexnord most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=RXN
Earnings Highlights and Summary
For the three months ended December 31, 2017, Rexnord's net sales jumped 9% to $492.3 million compared to $451.8 million in Q3 FY17. The Company's core sales growth was 6% in the reported quarter, aided by 1% through acquisitions, and 2% from favorable foreign currency translation. Rexnord's revenue numbers beat analysts' expectations of $482.8 million.
For Q3 FY18, Rexnord's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $94.9 million, or 19.3% of net sales, compared to an adjusted EBITDA of $79.2 million, or 17.6% of net sales, in Q3 FY17.
During Q3 FY18, Rexnord reported a net income of $75.8 million, or $0.67 per diluted share, compared to $1.7 million, or $0.02 per diluted share, in Q3 FY17. The Company's reported quarter results included a $55 million non-recurring tax benefit from the US tax reform. Rexnord's adjusted earnings surged 48% to $0.37 per diluted share for Q3 FY18 compared to $0.25 per diluted share in Q3 FY17, and were ahead of Wall Street's estimates of $0.27 per share.
Segment Highlights
During Q3 FY18, Rexnord's Process & Motion Control (PMC) segment's net sales advanced 8% to $292.5 million compared to $270.3 million in Q3 FY17, as core sales increased 6% on a y-o-y basis and foreign currency translation added 2%. The increase in core sales was attributed to favorable demand trends across the majority of the Company's served end-markets.
For Q3 FY18, the PMC segment's income from operations was $49 million, or 16.6% of net sales. The segment's adjusted EBITDA were $65.9 million in the reported quarter versus $55.7 million in the year earlier same quarter. The PMC segment's adjusted EBITDA as a percentage of net sales increased by 190 basis points to 22.5% on a y-o-y basis.
During Q3 FY18, Rexnord's Water Management segment's net sales jumped 10% to $199.8 million compared to $179.1 million in Q3 FY17. The segment's core sales grew 7% on a y-o-y basis, excluding a 2% increase from the World Dryer acquisition, a 1% adverse impact associated with the exit of the RHF product line, and a 2% favorable impact from foreign currency translation. The y-o-y growth in core sales reflected favorable demand trends in Rexnord's non-residential construction, water, and wastewater infrastructure markets.
For Q3 FY18, the Water Management segment's income from operations was $26 million, or 12.9% of net sales. The segment's income from operations as a percentage of net sales increased by 500 basis points on a y-o-y basis, driven by core sales volume growth, ongoing cost reduction and productivity initiatives, and lower restructuring expenses. The segment's adjusted EBITDA were $37.2 million, or 18.6% of sales, in the reported quarter versus $31.5 million, or 17.6% of sales, in the year earlier comparable quarter.
Cash Matters
As of December 31, 2017, Rexnord's cash and cash equivalents totaled $234.8 million compared to $490.1 million as on March 31, 2017. For the first three quarters of the fiscal year 2018, the Company's free cash flow was $96.8 million compared to $78.1 million for the year ago corresponding period.
Outlook
For the fiscal year 2018, Rexnord is forecasting net income to be in the range of $155 million to $159 million; adjusted EBITDA to be in the band of $381 million to $387 million; and free cash flow to exceed net income.
Stock Performance Snapshot
February 16, 2018 - At Friday's closing bell, Rexnord's stock slightly fell 0.11%, ending the trading session at $27.96.
Volume traded for the day: 691.52 thousand shares.
Stock performance in the last month - up 1.45%; previous three-month period - up 21.57%; past twelve-month period - up 26.29%; and year-to-date - up 7.46%
After last Friday's close, Rexnord's market cap was at $2.91 billion.
Price to Earnings (P/E) ratio was at 22.37.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.2% at the end of the session.
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