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RBC Bearings (RBC) Q2 Earnings and Revenues Increase Y/Y
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RBC Bearings Incorporated’s (RBC - Free Report) second-quarter fiscal 2024 (ended September 2023) adjusted earnings of $2.17 per share increased 12.4% from the year-ago earnings of $1.93 per share, supported by higher revenues.
Revenue Details
In the quarter under review, RBC Bearings’ revenues were $385.6 million, reflecting an increase of 4.4% from the year-ago quarter’s level. However, RBC Bearings’ revenues missed the Zacks Consensus Estimate of $390 million.
While exiting the reported quarter, RBC had a backlog of $641.3 million, down 1.8% year over year.
RBC currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal second quarter is briefly discussed below:
Industrial revenues of $258.3 million (representing 67% of the quarter’s revenues) were down 2.8% year over year.
Aerospace/Defense revenues totaled $127.3 million (representing 33% of the quarter’s revenues), increasing 22.9% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
In the reported quarter, RBC Bearings’ cost of sales increased 0.6% year over year to $219.2 million. Gross profit increased 10% to $166.3 million. The margin increased 220 basis points (bps) to 43.1%.
Selling, general and administrative expenses were $60.6 million, up 5.3% year over year. Adjusted EBITDA was $122.1 million, increasing 12.3%. The EBITDA margin was 31.7%, up 220 bps year over year.
Adjusted operating income increased 16.3% to $88.4 million. The adjusted margin increased 230 bps to 22.9%. Net interest expenses were $20.1 million compared with $18.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
At the time of exiting the fiscal second quarter, RBC Bearings had cash and cash equivalents of $56.6 million compared with $65.4 million at the end of the fourth quarter of fiscal 2023. Total debt was $1,323.5 million, down from $1,395.0 million at the end of the fourth quarter of fiscal 2023.
In the first six months of fiscal 2024, RBC Bearings generated net cash of $114.8 million from operating activities, increasing 29.9% from the previous-year period’s number. Capital expenditure was $7.5 million, decreasing 50.8% from the year-ago quarter.
In the same time period, RBC Bearings repurchased shares for $7 million, increasing 17.3% year over year.
Outlook
For the third quarter of fiscal 2024, RBC Bearings anticipates net sales to be $370-$380 million, suggesting an increase of 5.2-8.1% from the year-ago figure of $351.6 million. The Zacks Consensus Estimate for the quarter is pegged at $390.22 million. The gross margin (as a percentage of net sales) is expected to be 42.25-42.75% for the quarter. RBC predicts selling, general and administrative expenses (as a percentage of net sales) to be 17.00-17.50%. For the fiscal quarter, the company expects interest expense (net) to be $19,500-$20,000.
Zacks Rank & Stocks to Consider
RBC currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
In the past 60 days, estimates for Graco’s 2023 earnings have increased 1.3%. The stock has gained 9% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.9%, on average.
AIT’s earnings estimates have increased 1.9% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 22.6% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 14%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 4.5% for 2023. The stock has soared 20.4% in the past year.
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RBC Bearings (RBC) Q2 Earnings and Revenues Increase Y/Y
RBC Bearings Incorporated’s (RBC - Free Report) second-quarter fiscal 2024 (ended September 2023) adjusted earnings of $2.17 per share increased 12.4% from the year-ago earnings of $1.93 per share, supported by higher revenues.
Revenue Details
In the quarter under review, RBC Bearings’ revenues were $385.6 million, reflecting an increase of 4.4% from the year-ago quarter’s level. However, RBC Bearings’ revenues missed the Zacks Consensus Estimate of $390 million.
While exiting the reported quarter, RBC had a backlog of $641.3 million, down 1.8% year over year.
RBC currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal second quarter is briefly discussed below:
Industrial revenues of $258.3 million (representing 67% of the quarter’s revenues) were down 2.8% year over year.
Aerospace/Defense revenues totaled $127.3 million (representing 33% of the quarter’s revenues), increasing 22.9% 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 0.6% year over year to $219.2 million. Gross profit increased 10% to $166.3 million. The margin increased 220 basis points (bps) to 43.1%.
Selling, general and administrative expenses were $60.6 million, up 5.3% year over year. Adjusted EBITDA was $122.1 million, increasing 12.3%. The EBITDA margin was 31.7%, up 220 bps year over year.
Adjusted operating income increased 16.3% to $88.4 million. The adjusted margin increased 230 bps to 22.9%. Net interest expenses were $20.1 million compared with $18.3 million in the year-ago quarter.
Balance Sheet and Cash Flow
At the time of exiting the fiscal second quarter, RBC Bearings had cash and cash equivalents of $56.6 million compared with $65.4 million at the end of the fourth quarter of fiscal 2023. Total debt was $1,323.5 million, down from $1,395.0 million at the end of the fourth quarter of fiscal 2023.
In the first six months of fiscal 2024, RBC Bearings generated net cash of $114.8 million from operating activities, increasing 29.9% from the previous-year period’s number. Capital expenditure was $7.5 million, decreasing 50.8% from the year-ago quarter.
In the same time period, RBC Bearings repurchased shares for $7 million, increasing 17.3% year over year.
Outlook
For the third quarter of fiscal 2024, RBC Bearings anticipates net sales to be $370-$380 million, suggesting an increase of 5.2-8.1% from the year-ago figure of $351.6 million. The Zacks Consensus Estimate for the quarter is pegged at $390.22 million. The gross margin (as a percentage of net sales) is expected to be 42.25-42.75% for the quarter. RBC predicts selling, general and administrative expenses (as a percentage of net sales) to be 17.00-17.50%. For the fiscal quarter, the company expects interest expense (net) to be $19,500-$20,000.
Zacks Rank & Stocks to Consider
RBC currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Graco Inc. (GGG - Free Report) presently carries a Zacks Rank #2 (Buy). GGG’s earnings surprise in the last four quarters was 7.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Graco’s 2023 earnings have increased 1.3%. The stock has gained 9% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.9%, on average.
AIT’s earnings estimates have increased 1.9% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 22.6% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 14%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 4.5% for 2023. The stock has soared 20.4% in the past year.