Regal Beloit lowers FY19 adjusted EPS view 2.7% to $5.45-$5.55
Consensus is for FY19 EPS $5.52. Sees FY19 GAAP diluted EPS $5.85-$5.95. The difference between the GAAP diluted EPS and adjusted diluted EPS relates to expected restructuring and related costs of 34c per share, gain on businesses divested and assets to be exited of 70c per share, net income from businesses to be divested/exited of 8c per share, and CEO transition costs of 4c per share. The company added "We are increasing our free cash flow to adjusted net income guidance to over 115% for the year. For EPS, we are lowering our adjusted diluted EPS guidance to $5.45-$5.55, a reduction of 2.7% at the midpoint. We believe this reduction reflects current market conditions. We continue to accelerate cost-out activities focused on three main initiatives; 80/20 simplification efforts, plant consolidations, of which five have been announced, and product rationalization efforts, particularly in our Commercial and Industrial segment. This, along with growth plans that I have recently reviewed with our teams during the strategic planning process, are compelling value creation opportunities we have at Regal."