) reported earnings per share, adjusted for one-time items, of 24
cents for the first quarter of fiscal 2014 (ended Jun 29, 2013).
Results were a cent above 23 cents earned in the year-ago quarter
and also surpassed the Zacks Consensus Estimate of 20 cents per
Including one-time adjustments, GAAP earnings per share in the
quarter were 14 cents versus 2 cents loss reported in the
Rexnord's net sales increased 3.1% year over year to $508.7
million in the first quarter. The increase can be attributed to
healthy performance at the company's business segments.
Process & Motion Control sales in the first quarter increased
0.2% to $314.6 million while sales at Water Management business
were $194.1 million, up 8.0% year over year.
Cost of sales in the first quarter increased 3.8% year over year
and represented 64.2% of total revenue; up from 63.8% in the
year-ago quarter. Gross margin came in at 35.8%. Selling, general
and administrative expenses, as a percentage of total revenue,
stood at 21.0%.
Exiting the first quarter of fiscal 2014, Rexnord's cash and cash
equivalents stood at $334.9 million compared with $524.1 million
in the previous quarter. Long-term debt registered a slight
decline sequentially and came in at $1,961.4 million at the end
of the quarter.
In the first quarter of fiscal 2014, Rexnord used $27.3 million
of net cash for operating activities as compared with $37.9
million used in the year-ago quarter. Capital spending compared
with the year-ago quarter was roughly half at $7.8 million.
For full fiscal year 2014, management of Rexnord increased its
core sales growth guidance from 1%-3%, to 2%-4%. Earnings per
share guidance were also raised at the lower end from
$1.10-$1.18, to $1.12-$1.18. Tax rate is expected to be within
For the second quarter of fiscal 2014, sales are anticipated to
be within $510-$520 million and adjusted earnings per share
within 23-25 cents range. Tax rate is expected to be 35%.
Rexnord Corporation is a well-known mechanical components
manufacturer and currently has a $1.9 billion market
capitalization. The stock currently has a Zacks Rank #2 (Buy).
Other stocks to watch out for are
AO Smith Corp.
Lennox International, Inc.
), each with a Zacks Rank #1 (Strong Buy) while
Plug Power Inc.
) has a Zacks Rank #2 (Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
LENNOX INTL INC (LII): Free Stock Analysis
PLUG POWER INC (PLUG): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
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