What trends in RRX's earnings suggest for 2025?

Regal Rexnord (RRX) is facing significant headwinds as evidenced by its declining net income and revenue, as well as its diluted EPS. These trends suggest a challenging outlook for the company in 2025.

1. **Earnings Decline**: RRX has experienced a substantial decrease in net income, with a growth rate of -25.8%. This indicates a sharp downturn in profitability. Additionally, the diluted EPS has declined by 26.19%, suggesting that earnings per share are also under significant pressure.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|RRX|RRX.N|Regal Rexnord|2024 Q1|470.9090909090909|26.435748713340413|433.33333333333337|169|
|RRX|RRX.N|Regal Rexnord|2024 Q2|89.7590361445783|-12.495759357684044|95.83333333333333|169|
|RRX|RRX.N|Regal Rexnord|2024 Q3|152.66955266955267|-10.449751485028488|151.90476190476193|169|
|RRX|RRX.N|Regal Rexnord|2024 Q4|-25.795053003533567|-9.146872279567217|-26.190476190476186|169|

2. **Revenue Decline**: The company's total revenue has also been on the decline, with a growth rate of -9.15%. This decline in revenue is likely contributing to the overall financial challenges faced by RRX.
3. **Analyst Expectations**: The average analyst price target for RRX is $172.33, compared to the current price of $95.78. This suggests that analysts are anticipating a potential upside from the current price, although this does not necessarily translate to an immediate reversal of the company's declining earnings trend.

4. **Estimates for 2025**: The estimated EPS for RRX as of December 31, 2024, is $2.47, which is significantly higher than the actual EPS of $0.62 reported for the same period. This indicates that analysts are expecting a strong rebound in earnings, which may not be supported by the current financial data.

In conclusion, while there is potential for a rebound in RRX's stock price based on analyst expectations, the company's declining earnings trends suggest that 2025 may continue to be a challenging year for Regal Rexnord. The company will need to demonstrate a significant improvement in its core financial performance to meet these estimates.