(RBC) - Exceeded analysts' earnings expectations for six consecutive quarters

Regal Beloit Corporation (RBC), a Zacks #1 Rank stock, topped the Street's earnings estimate in six straight quarters by an average margin of 6.2%. On Jul 27, the company surprised to the upside by 5.3% when it posted second-quarter earnings per share of 99 cents. Consensus estimates have been trending higher for this quarter and the full year of 2006. The company is currently yielding 1.4% and has a price-to-book ratio of 1.9. Full Analysis Regal Beloit Corporation is a global manufacturer of commercial and industrial electric motors, electric generators and controls, and mechanical motion control products, as well as heating, ventilation and air conditioning (HVAC) motors. RBC's manufacturing and service facilities are located in the United States, Canada, Mexico, Europe and Asia. RBC exceeded analysts' earnings expectations for six consecutive quarters by an average margin of 6.2%. Furthermore, one would have to go all the way back to the third quarter of 2003 to witness an earnings disappointment by the company. On Jul 27, the company surprised to the upside by 5.3% when it posted second-quarter earnings per share of 99 cents. When compared to the prior-year period, earnings soared 59.7%. Net sales jumped 18.0% to $435.3 million. Chairman and CEO Henry W. Knueppel stated, "The sales environment was strong in almost all of our end markets during the quarter and our view remains positive into the future." Over the past 30 days, the consensus estimate for this quarter increased 20.9% to 81 cents and represents upward revisions by six analysts. For the full year of 2006, profit forecasts have risen 6.5% to $3.13. Seven analysts upped their projections. Earnings per share are expected to grow 15% over the next 3-5 years, which is 1% greater than the projected growth rate of the industry. The Board of Directors declared a quarterly dividend of 14 cents per share on Jul 24. The dividend is payable on Oct 16 to shareholders of record as of Sep 29. The company is currently yielding 1.4%. RBC is currently trading at a valuation of 14.1x trailing 12-month earnings and at 13.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.9, compared to 5.0 for the market. RBC's return on equity of 15% is in line with the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home