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

RBC Bearings (NYSE:RBC) issued its earnings results on Friday. The industrial products company reported $3.88 EPS for the quarter, topping the consensus estimate of $3.42 by $0.46, Briefing.com reports. RBC Bearings had a net margin of 15.37% and a return on equity of 11.35%. The company had revenue of $519.50 million for the quarter, compared to the consensus estimate of $508.92 million. During the same period in the previous year, the firm earned $2.84 earnings per share. 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%

NYSE:RBC opened at $552.76 on Friday. The company has a 50-day moving average price of $597.68 and a 200-day moving average price of $570.46. The stock has a market cap of $17.50 billion, a price-to-earnings ratio of 54.62, a P/E/G ratio of 3.14 and a beta of 1.40. The company has a current ratio of 2.18, a quick ratio of 0.78 and a debt-to-equity ratio of 0.21. RBC Bearings has a 12 month low of $364.50 and a 12 month high of $667.69.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on RBC shares. Truist Financial reissued a “buy” rating and issued a $615.00 price target (up from $599.00) on shares of RBC Bearings in a report on Tuesday, May 19th. Wall Street Zen lowered shares of RBC Bearings from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Zacks Research cut RBC Bearings from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. Weiss Ratings downgraded RBC Bearings from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday. Finally, Morgan Stanley boosted their price target on RBC Bearings from $600.00 to $640.00 and gave the company an “overweight” rating in a report on Tuesday, May 19th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, RBC Bearings currently has an average rating of “Moderate Buy” and a consensus target price of $584.00.

Insider Activity at RBC Bearings

In other news, Director Edward Stewart sold 600 shares of the firm’s 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 in the company, valued at $12,649,213.71. This trade represents a 2.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Dolores J. Ennico sold 600 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $636.11, for a total value of $381,666.00. Following the completion of the sale, the director directly owned 7,254 shares in the company, valued at approximately $4,614,341.94. The trade was a 7.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,425 shares of company stock worth $885,400 over the last 90 days. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On RBC Bearings

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp increased its position in RBC Bearings by 0.5% during the 3rd quarter. State Street Corp now owns 919,259 shares of the industrial products company’s stock valued at $358,778,000 after buying an additional 4,568 shares in the last quarter. Invesco Ltd. raised its holdings in RBC Bearings by 6.2% in the fourth quarter. Invesco Ltd. now owns 404,777 shares of the industrial products company’s stock worth $181,514,000 after buying an additional 23,616 shares during the last quarter. Port Capital LLC grew its holdings in shares of RBC Bearings by 0.5% during the fourth quarter. Port Capital LLC now owns 369,853 shares of the industrial products company’s stock valued at $165,853,000 after buying an additional 2,005 shares during the last quarter. Snyder Capital Management L P raised its holdings in RBC Bearings by 0.8% in the 4th quarter. Snyder Capital Management L P now owns 328,984 shares of the industrial products company’s stock worth $147,526,000 after acquiring an additional 2,743 shares during the last quarter. Finally, Franklin Resources Inc. increased its holdings in shares of RBC Bearings by 2.6% in the 3rd quarter. Franklin Resources Inc. now owns 320,194 shares of the industrial products company’s stock worth $124,968,000 after purchasing an additional 8,083 shares in the last quarter.

About RBC Bearings

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.