Regal Beloit Corporation RBC reported weaker-than-expected second-quarter 2019 results, missing earnings estimates by 6.8%. Also, the company’s sales lagged estimates by 3.9%.Regal Beloit’s adjusted earnings were $1.52 per share, missing the Zacks Consensus Estimate of $1.63. Further, the bottom line declined from $1.60 per share reported a year ago.Core Sales, Divestments and Forex Woes Affect RevenuesIn the reported quarter, Regal Beloit’s net sales were $873.7 million, decreasing 9% year over year. Adverse impact of 2.2% from organic sales, 5.3% from divestments and 1.5% from forex woes hurt results.The top line lagged the Zacks Consensus Estimate of $909 million.Excluding the impact of divested business, the company’s adjusted net sales were $868.1 million, down 3.7% year over year.Regal Beloit Corporation Price, Consensus and EPS Surprise Regal Beloit Corporation price-consensus-eps-surprise-chart | Regal Beloit Corporation QuoteThe company reports results under three segments — Climate Solutions, Commercial and Industrial Systems and Power Transmission Solutions. The quarterly segmental results are briefly discussed below:Revenues from Climate Solutions totaled $267.9 million, decreasing 3.4% year over year. Organic sales jumped 2.3% on account of positive impact from the FER pre-buy and residential HVAC growth. Forex woes and divestments had an adverse impact of 0.7% and 5%, respectively.Commercial and Industrial Systems’ revenues were $401.8 million, down 14.3% year over year. Organic sales in the reported quarter decreased 5.5% while divestments resulted in adverse impact of 6.6%. Also, forex woes hurt sales by 2.2%.Power Transmission Solutions’ revenues were $204 million, down 4.4% year over year. Organic sales declined 0.8% on account of softness in North American industrial end markets and de-stocking of inventory. Forex woes and divestments had an adverse impact of 1% and 2.6%, respectively.Margins In the reported quarter, Regal Beloit’s cost of sales decreased 10.2% year over year to $639.7 million. It represented 73.2% of net sales compared with 74.2% in the year-ago quarter. Gross margin increased 100 basis points (bps) to 26.8%. Operating expenses of $138 million decreased 6.6% and represented 15.8% of net sales.Adjusted operating profit was $95.4 million, down 5.4% year over year, while margin dropped 20 bps to 11%. Adjusted effective tax rate in the quarter was 20.4% compared with 21.4% in the year-ago quarter.Balance Sheet and Cash FlowExiting the second quarter of 2019, Regal Beloit had cash and cash equivalents of $291.3 million, reflecting 17.2% growth from the figure reported on Dec 29, 2018. Long-term debt decreased 6.4%, to $1,222.7 million.Notably, the company repaid $0.1 million of debt during the quarter.In the second quarter, Regal Beloit generated net cash of $112.3 million from operating activities, reflecting a year-over-year increase of 10.3%. The company raised capital investment for purchasing property, plant and equipment by 69.8% over the year-ago figure to $36 million. Free cash flow was $76.3 million compared with cash flow of $80.6 million in the year-ago quarter.During the quarter, the company paid dividends totaling $12 million to shareholders and repurchased shares worth $55.9 million.OutlookFor 2019, adjusted earnings per share are expected to be $5.50-$5.80, lower from $6.15-$6.55 guided earlier.Zacks Rank & Key PicksRegal Beloit currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the Zacks Industrial Products sector are Roper Technologies, Inc. ROP, Dover Corporation DOV and Tetra Tech, Inc. TTEK. All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Roper delivered average positive earnings surprise of 6.92% in the trailing four quarters.Dover pulled off average positive earnings surprise of 6.91% in the trailing four quarters.Tetra Tech delivered average positive earnings surprise of 8.72% in the trailing four quarters.The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Regal Beloit Corporation (RBC): Free Stock Analysis Report Dover Corporation (DOV): Free Stock Analysis Report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report To read this article on Zacks.com click here.