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RBC Bearings Incorporated reported better-than-expected fourth-quarter fiscal 2022 (ended Apr 2, 2022) results. The company’s earnings surpassed the Zacks Consensus Estimate by 18.9% and quarterly sales beat the same by 2.6%.
Adjusted earnings in the quarter under review were $1.26 per share, surpassing the Zacks Consensus Estimate of $1.06. The bottom line increased 16.7% from the year-ago figure of $1.08, supported by the positive impacts of higher revenues.
In fiscal 2022, the company’s earnings came in at $3.89, reflecting an increase of 0.5% year over year.
Revenue Details
In the quarter under review, RBC Bearings’ revenues were $358.9 million, reflecting an increase of 123.9% from the year-ago quarter. Organic sales grew 10.4%, excluding the impacts of the DODGE buyout.
Exiting the reported quarter, the company had a backlog of $603.1 million, up 9.1% sequentially.
RBC Bearings’ revenues surpassed the Zacks Consensus Estimate of $350 million and were higher than the company’s projection of $340-$350 million.
ROLL currently has two reportable segments — Aerospace/Defense and Industrial. Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Industrial revenues of $253.9 million (representing 70.7% of the quarter’s revenues) were up 297.3% year over year. Excluding the impacts of the DODGE buyout, the segment’s sales increased 12.7% on the back of strength in mining, general industrial, semiconductor and energy markets.
Aerospace/Defense revenues totaled $105 million (representing 29.3% of the quarter’s revenues), increasing 8.9% year over year. The segment gained from strength in commercial aerospace sales and solid aerospace OEM component sales.
In fiscal 2022, its revenues were $942.9 million, an increase of 54.8% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
In the reported quarter, RBC Bearings’ cost of sales increased 126.4% year over year to $221.4 million, representing 61.7% of net sales compared with 61% a year ago. Gross profit increased 120% to $137.5 million. Margin decreased 70 basis points (bps) to 38.3%.
Selling, general and administrative expenses of $56 million were up 104.4% year over year, representing 15.6% of the quarter’s net sales. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $104.4 million, increasing 127.5%. The EBITDA margin is 29.1%, up 50 bps year over year.
Adjusted operating income increased 116.5% to $70.4 million. Adjusted margin declined 70 bps to 19.6%. Net interest expenses were $13.6 million compared with $0.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, RBC Bearings had cash and cash equivalents of $182.9 million, down from $255.5 million at the end of the previous quarter. Total debt was $1,688.3 million, down from $1,790.3 million at the end of the last quarter.
In fiscal 2022, the company generated net cash of $180.3 million from operating activities, increasing 18.2% from the previous year. Capital expenditure was $29.8 million, increasing 152.5%.
In the fiscal year, the company repurchased shares for $8.5 million, increasing 24.6% year over year.
Outlook
For the first quarter of fiscal 2023 (ending June 2022), RBC Bearings anticipates net sales of $355-$365 million (including the impact of Dodge buyout). This represents an increase of 127.3-133.7% from the year-ago figure of $156.2 million.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies from the same space are discussed below:
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have inched up 0.1% in the past three months.
Nordson Corporation (NDSN - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 4.5%, on average.
In the past 60 days, NDSN’s earnings estimates have increased 2.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 1.5% in the past three months.
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RBC Bearings (ROLL) Q4 Earnings & Revenues Beat Estimates
RBC Bearings Incorporated reported better-than-expected fourth-quarter fiscal 2022 (ended Apr 2, 2022) results. The company’s earnings surpassed the Zacks Consensus Estimate by 18.9% and quarterly sales beat the same by 2.6%.
Adjusted earnings in the quarter under review were $1.26 per share, surpassing the Zacks Consensus Estimate of $1.06. The bottom line increased 16.7% from the year-ago figure of $1.08, supported by the positive impacts of higher revenues.
In fiscal 2022, the company’s earnings came in at $3.89, reflecting an increase of 0.5% year over year.
Revenue Details
In the quarter under review, RBC Bearings’ revenues were $358.9 million, reflecting an increase of 123.9% from the year-ago quarter. Organic sales grew 10.4%, excluding the impacts of the DODGE buyout.
Exiting the reported quarter, the company had a backlog of $603.1 million, up 9.1% sequentially.
RBC Bearings’ revenues surpassed the Zacks Consensus Estimate of $350 million and were higher than the company’s projection of $340-$350 million.
ROLL currently has two reportable segments — Aerospace/Defense and Industrial. Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Industrial revenues of $253.9 million (representing 70.7% of the quarter’s revenues) were up 297.3% year over year. Excluding the impacts of the DODGE buyout, the segment’s sales increased 12.7% on the back of strength in mining, general industrial, semiconductor and energy markets.
Aerospace/Defense revenues totaled $105 million (representing 29.3% of the quarter’s revenues), increasing 8.9% year over year. The segment gained from strength in commercial aerospace sales and solid aerospace OEM component sales.
In fiscal 2022, its revenues were $942.9 million, an increase of 54.8% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote
Margin Profile
In the reported quarter, RBC Bearings’ cost of sales increased 126.4% year over year to $221.4 million, representing 61.7% of net sales compared with 61% a year ago. Gross profit increased 120% to $137.5 million. Margin decreased 70 basis points (bps) to 38.3%.
Selling, general and administrative expenses of $56 million were up 104.4% year over year, representing 15.6% of the quarter’s net sales. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $104.4 million, increasing 127.5%. The EBITDA margin is 29.1%, up 50 bps year over year.
Adjusted operating income increased 116.5% to $70.4 million. Adjusted margin declined 70 bps to 19.6%. Net interest expenses were $13.6 million compared with $0.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, RBC Bearings had cash and cash equivalents of $182.9 million, down from $255.5 million at the end of the previous quarter. Total debt was $1,688.3 million, down from $1,790.3 million at the end of the last quarter.
In fiscal 2022, the company generated net cash of $180.3 million from operating activities, increasing 18.2% from the previous year. Capital expenditure was $29.8 million, increasing 152.5%.
In the fiscal year, the company repurchased shares for $8.5 million, increasing 24.6% year over year.
Outlook
For the first quarter of fiscal 2023 (ending June 2022), RBC Bearings anticipates net sales of $355-$365 million (including the impact of Dodge buyout). This represents an increase of 127.3-133.7% from the year-ago figure of $156.2 million.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies from the same space are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have inched up 0.1% in the past three months.
Nordson Corporation (NDSN - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 4.5%, on average.
In the past 60 days, NDSN’s earnings estimates have increased 2.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 1.5% in the past three months.