RBC Bearings Incorporated reported mixed second-quarter fiscal 2019 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.22 per share, up 47% year over year. It outpaced the consensus estimate of $1.08.
Net sales in the reported quarter came in at $172.92 million, up 5.2% year over year. However, the figure missed the Zacks Consensus Estimate of $174 million. Notably, revenues improved 7.3% year over year, organically.
Revenues in the Plain bearings segment were $77.5 million, up 7% year over year. The Roller bearings segment’s top line improved 14.6% to $37 million. Quarterly revenues in the Ball bearings segment came in at $18 million, up 9.1%. However, the Engineered products segment’s revenues were $40.4 million, down 6.3%.
Costs/Margins
Cost of sales in the reported quarter came in at $105.1 million, up 2.6% year over year. Adjusted gross margin was 39.2%, up 150 basis points (bps).
Aggregate operating expenses in the fiscal second quarter were $31.9 million, up from $36.5 million recorded in the year-ago quarter. Adjusted operating margin was 20.8%, up 530 bps year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, RBC Bearings had cash and cash equivalents of $60.4 million, up from $42.9 million recorded as of Sep 30, 2017. Total debt was $124.5 million, down from $220.2 million reported a year ago.
In the first six months of fiscal 2019, the company generated $57.9 million cash from operating activities, down from $64 million recorded in the year-ago period. Capital expenditures in the quarter totaled $10.8 million, up from $7 million incurred in second-quarter fiscal 2018.
Outlook
RBC Bearings intends to boost its near-term competency on the back of solid industrial and aerospace sales. The company anticipates generating revenues of $174-$176 million in third-quarter fiscal 2019 (estimating year-over-year growth of 4.3-5.5%).
Zacks Rank & Key Picks
RBC Bearings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Applied Industrial Technologies, Inc. (AIT - Free Report) , Graco Inc. (GGG - Free Report) and Luxfer Holdings PLC (LXFR - Free Report) . Notably, all these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial Technologies surpassed estimates in each of the trailing four quarters, the average beat being 11.67%.
Graco exceeded estimates twice in the trailing four quarters, the average beat being 4.05%.
Luxfer Holdings surpassed estimates thrice in the trailing four quarters, the average beat being 24.27%.
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RBC Bearings Incorporated reported mixed second-quarter fiscal 2019 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.22 per share, up 47% year over year. It outpaced the consensus estimate of $1.08.
Net sales in the reported quarter came in at $172.92 million, up 5.2% year over year. However, the figure missed the Zacks Consensus Estimate of $174 million. Notably, revenues improved 7.3% year over year, organically.
Revenues in the Plain bearings segment were $77.5 million, up 7% year over year. The Roller bearings segment’s top line improved 14.6% to $37 million. Quarterly revenues in the Ball bearings segment came in at $18 million, up 9.1%. However, the Engineered products segment’s revenues were $40.4 million, down 6.3%.
Costs/Margins
Cost of sales in the reported quarter came in at $105.1 million, up 2.6% year over year. Adjusted gross margin was 39.2%, up 150 basis points (bps).
Aggregate operating expenses in the fiscal second quarter were $31.9 million, up from $36.5 million recorded in the year-ago quarter. Adjusted operating margin was 20.8%, up 530 bps year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, RBC Bearings had cash and cash equivalents of $60.4 million, up from $42.9 million recorded as of Sep 30, 2017. Total debt was $124.5 million, down from $220.2 million reported a year ago.
In the first six months of fiscal 2019, the company generated $57.9 million cash from operating activities, down from $64 million recorded in the year-ago period. Capital expenditures in the quarter totaled $10.8 million, up from $7 million incurred in second-quarter fiscal 2018.
Outlook
RBC Bearings intends to boost its near-term competency on the back of solid industrial and aerospace sales. The company anticipates generating revenues of $174-$176 million in third-quarter fiscal 2019 (estimating year-over-year growth of 4.3-5.5%).
Zacks Rank & Key Picks
RBC Bearings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Applied Industrial Technologies, Inc. (AIT - Free Report) , Graco Inc. (GGG - Free Report) and Luxfer Holdings PLC (LXFR - Free Report) . Notably, all these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial Technologies surpassed estimates in each of the trailing four quarters, the average beat being 11.67%.
Graco exceeded estimates twice in the trailing four quarters, the average beat being 4.05%.
Luxfer Holdings surpassed estimates thrice in the trailing four quarters, the average beat being 24.27%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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