There's been a notable change in appetite for Regal Rexnord Corporation (NYSE:RRX) shares in the week since its second-quarter report, with the stock down 13% to US$178. Revenues were US$1.6b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.74, an impressive 29% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Regal Rexnord after the latest results.

Taking into account the latest results, the most recent consensus for Regal Rexnord from eleven analysts is for revenues of US$6.21b in 2026. If met, it would imply a modest 2.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 16% to US$5.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.24b and earnings per share (EPS) of US$5.69 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$251. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Regal Rexnord analyst has a price target of US$275 per share, while the most pessimistic values it at US$220. 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. We would highlight that Regal Rexnord's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2026 being well below the historical 9.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Regal Rexnord.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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$251, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Regal Rexnord. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Regal Rexnord analysts - going out to 2028, and you can see them free on our platform here.

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.