RBC Bearings (NYSE:RBC) Posts Earnings Results, Beats Estimates By $0.46 EPS

RBC Bearings (NYSE:RBC) issued its quarterly earnings results on Friday. The industrial products company reported $3.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.42 by $0.46, Briefing.com reports. RBC Bearings had a return on equity of 11.35% and a net margin of 15.37%.The firm had revenue of $519.50 million for the quarter, compared to analysts’ expectations of $508.92 million. During the same quarter in the previous year, the firm posted $2.84 EPS. The firm’s revenue for the quarter was up 19.2% on a year-over-year basis.

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%

Shares of RBC traded down $9.14 during mid-day trading on Friday, reaching $552.76. The company had a trading volume of 413,177 shares, compared to its average volume of 207,387. The stock has a market cap of $17.50 billion, a price-to-earnings ratio of 60.81, a price-to-earnings-growth ratio of 3.20 and a beta of 1.40. The firm has a fifty day simple moving average of $597.68 and a 200-day simple moving average of $570.46. RBC Bearings has a fifty-two week low of $364.50 and a fifty-two week high of $667.69. The company has a current ratio of 2.18, a quick ratio of 0.78 and a debt-to-equity ratio of 0.21.

Insider Buying and Selling at RBC Bearings

In other RBC Bearings news, Director Edward Stewart sold 600 shares of RBC Bearings stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $592.83, for a total transaction of $355,698.00. Following the transaction, the director directly 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 sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP John J. Feeney sold 225 shares of RBC Bearings stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $657.94, for a total transaction of $148,036.50. Following the transaction, the vice president owned 2,378 shares in the company, valued at $1,564,581.32. The trade was a 8.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,425 shares of company stock valued at $885,400. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Advisors Asset Management Inc. bought a new position in RBC Bearings in the first quarter worth about $26,000. Larson Financial Group LLC raised its position in shares of RBC Bearings by 148.5% during the 3rd quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 49 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of RBC Bearings by 123.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 96 shares of the industrial products company’s stock worth $37,000 after purchasing an additional 53 shares during the period. Measured Wealth Private Client Group LLC bought a new stake in shares of RBC Bearings in the 3rd quarter worth approximately $55,000. Finally, Danske Bank A S acquired a new position in RBC Bearings during the 3rd quarter valued at approximately $78,000.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on RBC. Zacks Research lowered RBC Bearings from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Weiss Ratings downgraded shares of RBC Bearings from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday. Truist Financial reiterated a “buy” rating and set a $615.00 price target (up from $599.00) on shares of RBC Bearings in a report on Tuesday, May 19th. Wall Street Zen downgraded shares of RBC Bearings from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. Finally, Morgan Stanley raised their target price on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 19th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus 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.