×
S&P 500   3,813.09 (-0.22%)
DOW   30,989.15 (+0.14%)
QQQ   283.55 (+0.00%)
AAPL   140.00 (+1.86%)
MSFT   260.82 (+1.69%)
META   163.35 (+1.66%)
GOOGL   2,241.59 (+0.06%)
AMZN   109.92 (+2.35%)
TSLA   674.33 (-3.39%)
NVDA   154.06 (-3.60%)
NIO   21.73 (-2.82%)
BABA   115.46 (-1.11%)
AMD   77.39 (-4.20%)
MU   55.99 (-3.23%)
CGC   3.51 (-2.77%)
T   20.70 (+0.44%)
GE   63.83 (-3.11%)
F   11.49 (-2.71%)
DIS   95.03 (-0.93%)
AMC   13.38 (-0.37%)
PFE   51.10 (+0.87%)
PYPL   71.56 (-0.36%)
NFLX   178.10 (-0.84%)
S&P 500   3,813.09 (-0.22%)
DOW   30,989.15 (+0.14%)
QQQ   283.55 (+0.00%)
AAPL   140.00 (+1.86%)
MSFT   260.82 (+1.69%)
META   163.35 (+1.66%)
GOOGL   2,241.59 (+0.06%)
AMZN   109.92 (+2.35%)
TSLA   674.33 (-3.39%)
NVDA   154.06 (-3.60%)
NIO   21.73 (-2.82%)
BABA   115.46 (-1.11%)
AMD   77.39 (-4.20%)
MU   55.99 (-3.23%)
CGC   3.51 (-2.77%)
T   20.70 (+0.44%)
GE   63.83 (-3.11%)
F   11.49 (-2.71%)
DIS   95.03 (-0.93%)
AMC   13.38 (-0.37%)
PFE   51.10 (+0.87%)
PYPL   71.56 (-0.36%)
NFLX   178.10 (-0.84%)
S&P 500   3,813.09 (-0.22%)
DOW   30,989.15 (+0.14%)
QQQ   283.55 (+0.00%)
AAPL   140.00 (+1.86%)
MSFT   260.82 (+1.69%)
META   163.35 (+1.66%)
GOOGL   2,241.59 (+0.06%)
AMZN   109.92 (+2.35%)
TSLA   674.33 (-3.39%)
NVDA   154.06 (-3.60%)
NIO   21.73 (-2.82%)
BABA   115.46 (-1.11%)
AMD   77.39 (-4.20%)
MU   55.99 (-3.23%)
CGC   3.51 (-2.77%)
T   20.70 (+0.44%)
GE   63.83 (-3.11%)
F   11.49 (-2.71%)
DIS   95.03 (-0.93%)
AMC   13.38 (-0.37%)
PFE   51.10 (+0.87%)
PYPL   71.56 (-0.36%)
NFLX   178.10 (-0.84%)
S&P 500   3,813.09 (-0.22%)
DOW   30,989.15 (+0.14%)
QQQ   283.55 (+0.00%)
AAPL   140.00 (+1.86%)
MSFT   260.82 (+1.69%)
META   163.35 (+1.66%)
GOOGL   2,241.59 (+0.06%)
AMZN   109.92 (+2.35%)
TSLA   674.33 (-3.39%)
NVDA   154.06 (-3.60%)
NIO   21.73 (-2.82%)
BABA   115.46 (-1.11%)
AMD   77.39 (-4.20%)
MU   55.99 (-3.23%)
CGC   3.51 (-2.77%)
T   20.70 (+0.44%)
GE   63.83 (-3.11%)
F   11.49 (-2.71%)
DIS   95.03 (-0.93%)
AMC   13.38 (-0.37%)
PFE   51.10 (+0.87%)
PYPL   71.56 (-0.36%)
NFLX   178.10 (-0.84%)

Is RBC Bearings Rolling Into A Reversal?

Friday, May 27, 2022 | Thomas Hughes
Is RBC Bearings Rolling Into A Reversal?

RBC Bearings Recovery Gains Momentum 

RBC Bearings (NASDAQ: ROLL) is not a large company but its FQ4 results are among the most important at this stage in the earnings cycle. The company makes ball bearings and ball bearing components which isn’t very exciting until you think about all the applications for bearings. Bearings are in virtually every mechanical object made by man and are an important leading indicator in the economic cycle. And RBC Bearings' recovery appears to be gaining momentum despite the rise of inflation, the fear of recession, and dying out of pandemic tailwinds. 

RBC Bearings Beats And Guides Higher 

RBC Bearings had a blow-out quarter pulling in revenue of $385.9 million. This is up 123.9% on the combination of organic strength and the acquisition of Dodge Industrial. On an organic basis, the revenue is up 10.4% and beat the Marketbeat.com consensus estimate by over 250 basis points. On a segment basis, Industrial sales led with a growth of 297% compared to the smaller 8.9% growth put in by the Aerospace and Defense segment. 

Moving on to the margin, the margins contracted slightly on a YOY basis but not enough to offset the revenue strength or as bad as feared. The gross margin contracted by less than 100 basis points, the operating margin by about 240, to leave earnings well above the estimates. The $1.26 in adjusted EPS is not only up 16% versus last year but beat the consensus by a dime but that measure includes non-cash impairments that do not have a meaningful impact on the operations. Excluding those items, adjusted cash earnings came in at $2.15 or up almost double from last year and this strength is expected to continue into the coming quarter. 


The company did not give guidance for the full year but did give guidance for Q1 and it looks like momentum is building. The company’s backlog is up sequentially and almost 53% versus last year with new orders rolling in. This led management to increase the guidance for revenue to $355 million at the low end of the range compared to the $351 million Marketbeat.com consensus estimate. 

The Sell-Side Is Buying RBC Bearings

The analyst's activity in RBC Bearings has been light this year but it and the institutional activity are bullish tailwinds for share prices. The analysts rate the stock a Buy with a price target more than 37% above the current price action. There have been no commentaries since the Q4 results were released but we think they will be favorable when they come. As for the institutions, they’ve been net buyers for the last 12 months and picked up an amount worth 14.15% of the market cap with shares trading at $170. The institutions now own more than 93% of the stock. 

The Technical Outlook: RBC Bearings Pops On Guidance 

Price action in RBC Bearings popped in the wake of the Q4 release and may move higher. The caveat is that price action has been halted at the short-term moving average where it has been halted in the past. If the market can not get above the EMA the stock may fall back to the recent low or lower. Assuming the institutions remain in favor of the stock, we see them putting a bottom in the stock at the $160 level if not propelling it higher from here. The risk, to us, is the valuation and dividend. The stock is trading at a high 39X its earnings and not paying a dividend which makes it a risky buy indeed in these uncertain times. 

Is RBC Bearings Rolling Into A Reversal?

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow to Profit In The Bear Market

Today, Kate is joined by a repeat guest, Rob Isbitts of Sungarden Investment Publishing. Rob specializes in ETF portfolios designed to deliver returns in any kind of market condition, including the current bear. In this conversation, Rob gives specific ideas for handling various allocations in your portfolio, and discusses how to approach inverse ETFs.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.