Shares of Regal Rexnord (RRX) tumbled 5.73% in after-hours trading on Wednesday following the release of its third-quarter earnings report and announcement of a CEO succession process. The company's results fell short of analyst expectations, and it lowered its full-year guidance, sparking investor concerns.

Regal Rexnord reported adjusted earnings per share of $2.51 for the quarter ended September 30, missing the consensus estimate of $2.57. While this represents a slight increase from $2.49 in the same quarter last year, it wasn't enough to meet market expectations. The company's revenue for the quarter came in at $1.497 billion, marginally beating analysts' projections of $1.495 billion.

Adding to investor worries, Regal Rexnord narrowed and lowered its full-year 2025 adjusted earnings guidance to a range of $9.50 to $9.80 per share, down from the previous forecast and below the FactSet consensus estimate of $9.86. This reduction in outlook suggests potential challenges in the company's near-term performance. Furthermore, the company announced that its Board of Directors has initiated a CEO succession process. Current CEO Louis Pinkham will remain in his role until a successor is identified, but his planned departure adds an element of uncertainty to the company's future leadership.