RBC Bearings (NYSE:RBC) Issues Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• RBC Bearings beat quarterly expectations: Earnings per share came in at $3.88 versus the $3.42 consensus, while revenue reached $519.5 million, up 19.2% year over year and above estimates.
• Growth was broad-based: Aerospace and defense sales rose 36.9%, industrial OEM revenue increased 21.5%, and strong free cash flow supported $127 million in debt repayment during and after the quarter.
• Near-term risks remain: Second-quarter adjusted gross-margin guidance is lower at 45.5%–45.75% due partly to the absence of one-time benefits, while marine shipments face supply-chain constraints; analysts nonetheless maintain a “Moderate Buy” consensus.

RBC Bearings (NYSE:RBC - Get Free Report) posted its quarterly earnings data on Friday. The industrial products company reported $3.88 earnings per share for the quarter, topping analysts' consensus estimates of $3.42 by $0.46, Briefing.com reports. The company had revenue of $519.50 million during the quarter, compared to analysts' expectations of $508.92 million. RBC Bearings had a net margin of 15.37% and a return on equity of 11.35%. The firm's revenue for the quarter was up 19.2% on a year-over-year basis. During the same period in the prior year, the business posted $2.84 earnings per share.

Here are the key takeaways from RBC Bearings' conference call:

• Positive Sentiment: RBC Bearings reported a strong fiscal first quarter, with sales up 19.2% year over year to $519.5 million, adjusted EPS up 36.6% to $3.88, and adjusted EBITDA up 28.1% to $181.2 million.
• Positive Sentiment: Aerospace and defense sales increased 36.9%, including strong commercial aerospace and defense growth, while the space business generated $25 million in first-quarter revenue and now serves more than a dozen customers.
• Positive Sentiment: Industrial demand remained broad-based, with OEM revenue up 21.5% and growth across aggregate and cement, food and beverage, warehousing, semiconductors, and grain markets; management said the trend continued into July.
• Positive Sentiment: Strong free cash flow of $146.9 million enabled $77 million of debt repayment during the quarter, followed by another $50 million afterward; the company remains on track to repay its remaining term loan by November 2026.
• Negative Sentiment: Second-quarter guidance calls for lower adjusted gross margins of 45.5%–45.75%, partly reflecting the absence of approximately 100 basis points from one-time tariff refunds, contract-related benefits, and normal seasonal effects. Marine shipments were also constrained by supply-chain issues, although management expects significant improvement in the second half of the fiscal year.

RBC Bearings Trading Down 1.6%

RBC stock traded down $9.14 during trading on Friday, reaching $552.76. 413,177 shares of the stock were exchanged, compared to its average volume of 207,387. The company has a current ratio of 2.18, a quick ratio of 0.78 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $17.50 billion, a price-to-earnings ratio of 60.81, a P/E/G ratio of 3.20 and a beta of 1.40. The business has a 50 day moving average price of $597.68 and a 200-day moving average price of $570.46. RBC Bearings has a 1 year low of $364.50 and a 1 year high of $667.69.

Insider Activity

In related news, VP John J. Feeney sold 225 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $657.94, for a total value of $148,036.50. Following the transaction, the vice president directly owned 2,378 shares in the company, valued at approximately $1,564,581.32. This represents a 8.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Edward Stewart sold 600 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $592.83, for a total value of $355,698.00. Following the completion of the transaction, the director owned 21,337 shares of the company's stock, valued at $12,649,213.71. The trade was a 2.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,425 shares of company stock valued at $885,400 in the last 90 days. Company insiders own 1.90% of the company's stock.

Institutional Trading of RBC Bearings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC boosted its holdings in RBC Bearings by 84.2% in the fourth quarter. CIBC Private Wealth Group LLC now owns 374 shares of the industrial products company's stock valued at $168,000 after purchasing an additional 171 shares during the period. UMB Bank n.a. boosted its holdings in shares of RBC Bearings by 7.1% in the 4th quarter. UMB Bank n.a. now owns 348 shares of the industrial products company's stock valued at $156,000 after buying an additional 23 shares in the last quarter. Brown Brothers Harriman & Co. grew its holdings in shares of RBC Bearings by 191.8% during the third quarter. Brown Brothers Harriman & Co. now owns 391 shares of the industrial products company's stock worth $153,000 after purchasing an additional 257 shares during the last quarter. Headlands Technologies LLC purchased a new stake in shares of RBC Bearings in the 2nd quarter valued at about $128,000. Finally, Aster Capital Management DIFC Ltd acquired a new stake in shares of RBC Bearings in the 4th quarter valued at about $107,000.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on RBC shares. Morgan Stanley lifted their target price on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 19th. Weiss Ratings cut shares of RBC Bearings from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday. Zacks Research lowered shares of RBC Bearings from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, June 3rd. Wall Street Zen lowered RBC Bearings from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Finally, Truist Financial reiterated a "buy" rating and set a $615.00 price objective (up from $599.00) on shares of RBC Bearings in a research report on Tuesday, May 19th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $584.00.

RBC Bearings Company Profile

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.