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RBC Bearings' (ROLL) Q1 Earnings Beat, Revenues In Line

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RBC Bearings Incorporated  reported better-than-expected results in first-quarter fiscal 2019 (ended June 2018).

Earnings/Revenues

Quarterly adjusted earnings came in at $1.15 per share, up 26.4% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.04.

Net sales in the reported quarter came in at $176 million, up 7.4% year over year. However, quarterly revenues came in line with the Zacks Consensus Estimate. Notably, revenues improved 9.4% year over year, organically.

Segmental Break-Up

Revenues in the Plain bearings segment were $78.5 million, up 8.1% year over year. The Roller bearings segment’s top-line performance improved 14.2% year over year to $35.9 million. Quarterly revenues in the Ball bearings segment came in at $18.1 million, up 14.5% year over year. However, the Engineered products segment’s revenues came in at $43.5 million, down 1.2% year over year.

RBC Bearings Incorporated Price, Consensus and EPS Surprise

 

RBC Bearings Incorporated Price, Consensus and EPS Surprise | RBC Bearings Incorporated Quote

Costs/Margins

Cost of sales in the reported quarter came in at $108.2 million, up 6.2% year over year. Adjusted gross margin was 38.5%, up 70 basis points (bps) year over year.

Aggregate operating expenses in the fiscal first quarter were $31.7 million, up from $30.1 million recorded in the year-ago quarter. Adjusted operating margin in the quarter was 20.5%, up 100 bps year over year.

Balance Sheet/Cash Flow

Exiting the fiscal first quarter, RBC Bearings had cash and cash equivalents of $55.7 million, up from $54.2 million recorded as of Mar 31, 2018. Long-term debt was $143.8 million, down from $154.1 million recorded at the end of fiscal 2018.

In the first three months of fiscal 2019, the company generated $33.8 million cash from operating activities, down from $39.8 million recorded in the year-ago period. Capital expenditures totaled $7 million, up from $5.7 million incurred in the year-earlier tally.

Outlook

RBC Bearings intends to boost its near-term competency on the back of sturdier industrial and aerospace sales. The company anticipates generating revenues of $171-$174 million in second-quarter fiscal 2019 (estimating year-over-year growth of 4.1-5.9%).

Zacks Rank and Other Stocks to Consider

RBC Bearings currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the Zacks Industrial Products sectorare listed below:

Altra Industrial Motion Corp. currently sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today’s Zacks Rank #1 Rank stocks here.

Chart Industries, Inc. (GTLS - Free Report) also flaunts a Zacks Rank of 1. The company recorded an average positive earnings surprise of 29.36% over the trailing four quarters.

Barnes Group, Inc. (B - Free Report) holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 6.88% during the same time frame.

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