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.
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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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.
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.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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