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RBC Bearings Incorporated delivered impressive results for the fourth quarter of fiscal 2021 (ended Apr 3, 2021). The company’s earnings beat estimates by 0.93% and sales exceeded the same by 0.83%.
Adjusted earnings in the reported quarter were $1.08 per share, surpassing the Zacks Consensus Estimate of $1.07. Also, the bottom line decreased 18.8% from the year-ago quarter’s figure of $1.33 on weak sales and a margin decline.
For fiscal 2021, the company’s adjusted earnings were $3.87 per share, down 23.7% from the year-ago figure of $5.07.
Revenue Details
In the reported quarter, RBC Bearings’ net sales were $160.3 million, declining 13.7% year over year due to the adverse impacts of the pandemic on operations.
The company’s overall aerospace business experienced a 28.6% decline in revenues. However, its business in industrial markets improved and recorded a 12.9% year-over-year increase in revenues.
The top line surpassed the Zacks Consensus Estimate of $159 million.
Exiting the reported quarter, the company had a backlog of $394.8 million, down 17.5% year over year.
RBC Bearings reports net sales under four heads/segments that are discussed below:
Revenues in Plain bearings totaled $74.7 million, down 20.4% year over year, while that for Roller bearings declined 21% year over year to $24.8 million. Ball bearings’ revenues of $23.1 million were up 12% year over year. Revenues in Engineered products summed $37.7 million, down 5.6% year over year.
For fiscal 2021, the company’s net sales were $609 million, reflecting a year-over-year decline of 16.3%.
Margin Picture
In the reported quarter, RBC Bearings’ cost of sales decreased 10.5% year over year to $97.8 million, representing 61% of net sales compared with 58.8% a year ago. Adjusted gross profit decreased 18.2% year over year to $62.7 million. Margin slipped 220 basis points (bps) to 39.1%.
Selling, general and administrative expenses of $27.4 million were down 11.5% year over year, accounting for 17.1% of net sales. Adjusted operating income declined 24.3% year over year to $32.5 million. Adjusted margin decreased 280 bps year over year to 20.3%. Interest expenses, net, declined 16% year over year to $0.3 million in the reported quarter.
Effective tax rate was 15.8% in the quarter under review compared with 21.4% in the prior-year quarter.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, RBC Bearings had cash and cash equivalents of $151.1 million, up 19.7% from $126.2 million recorded at the end of the previous quarter. Long-term debt was $13.5 million, down 6.3% sequentially.
In fiscal 2021, the company generated net cash of $152.5 million from operating activities, down 2% from $155.6 million in the previous year. Capital spending of $11.8 million fell 68.4% year over year.
In the fiscal year, the company repurchased shares worth $6.9 million, down from $12.2 million in the previous year.
Outlook
For the first quarter of fiscal 2022 (ending June 2021), RBC Bearings anticipates net sales of $154-$158 million.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
In the past 30 days, earnings estimates for the companies have improved for the current year. Further, positive earnings surprise in the last reported quarter was 62.50% for Luxfer, 82.81% for Tennant and 35.64% for Applied Industrial.
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RBC Bearings (ROLL) Q4 Earnings Beat Estimates, Decline Y/Y
RBC Bearings Incorporated delivered impressive results for the fourth quarter of fiscal 2021 (ended Apr 3, 2021). The company’s earnings beat estimates by 0.93% and sales exceeded the same by 0.83%.
Adjusted earnings in the reported quarter were $1.08 per share, surpassing the Zacks Consensus Estimate of $1.07. Also, the bottom line decreased 18.8% from the year-ago quarter’s figure of $1.33 on weak sales and a margin decline.
For fiscal 2021, the company’s adjusted earnings were $3.87 per share, down 23.7% from the year-ago figure of $5.07.
Revenue Details
In the reported quarter, RBC Bearings’ net sales were $160.3 million, declining 13.7% year over year due to the adverse impacts of the pandemic on operations.
The company’s overall aerospace business experienced a 28.6% decline in revenues. However, its business in industrial markets improved and recorded a 12.9% year-over-year increase in revenues.
The top line surpassed the Zacks Consensus Estimate of $159 million.
Exiting the reported quarter, the company had a backlog of $394.8 million, down 17.5% year over year.
RBC Bearings reports net sales under four heads/segments that are discussed below:
Revenues in Plain bearings totaled $74.7 million, down 20.4% year over year, while that for Roller bearings declined 21% year over year to $24.8 million. Ball bearings’ revenues of $23.1 million were up 12% year over year. Revenues in Engineered products summed $37.7 million, down 5.6% year over year.
For fiscal 2021, the company’s net sales were $609 million, reflecting a year-over-year decline of 16.3%.
Margin Picture
In the reported quarter, RBC Bearings’ cost of sales decreased 10.5% year over year to $97.8 million, representing 61% of net sales compared with 58.8% a year ago. Adjusted gross profit decreased 18.2% year over year to $62.7 million. Margin slipped 220 basis points (bps) to 39.1%.
Selling, general and administrative expenses of $27.4 million were down 11.5% year over year, accounting for 17.1% of net sales. Adjusted operating income declined 24.3% year over year to $32.5 million. Adjusted margin decreased 280 bps year over year to 20.3%. Interest expenses, net, declined 16% year over year to $0.3 million in the reported quarter.
Effective tax rate was 15.8% in the quarter under review compared with 21.4% in the prior-year quarter.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, RBC Bearings had cash and cash equivalents of $151.1 million, up 19.7% from $126.2 million recorded at the end of the previous quarter. Long-term debt was $13.5 million, down 6.3% sequentially.
In fiscal 2021, the company generated net cash of $152.5 million from operating activities, down 2% from $155.6 million in the previous year. Capital spending of $11.8 million fell 68.4% year over year.
In the fiscal year, the company repurchased shares worth $6.9 million, down from $12.2 million in the previous year.
Outlook
For the first quarter of fiscal 2022 (ending June 2021), RBC Bearings anticipates net sales of $154-$158 million.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote
Zacks Rank & Stocks to Consider
With a market capitalization of $4.7 billion, RBC Bearings currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the industry are Luxfer Holdings PLC (LXFR - Free Report) , Tennant Company (TNC - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Luxfer and Tennant presently sport a Zacks Rank #1 (Strong Buy), Applied Industrial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for the companies have improved for the current year. Further, positive earnings surprise in the last reported quarter was 62.50% for Luxfer, 82.81% for Tennant and 35.64% for Applied Industrial.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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