Regal Rexnord Corporation (NYSE:RRX) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.2% to hit US$1.5b. Statutory earnings per share (EPS) came in at US$0.96, some 7.4% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the nine analysts covering Regal Rexnord are now predicting revenues of US$6.21b in 2026. If met, this would reflect a modest 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 30% to US$5.59. Before this earnings report, the analysts had been forecasting revenues of US$6.13b and earnings per share (EPS) of US$5.74 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$250, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Regal Rexnord, with the most bullish analyst valuing it at US$300 and the most bearish at US$225 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Regal Rexnord's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Regal Rexnord's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Regal Rexnord is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Regal Rexnord's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$250, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Regal Rexnord analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Regal Rexnord , and understanding this should be part of your investment process.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.