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RBC Bearings' (ROLL) Q4 Earnings Miss Estimates, Up Y/Y

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RBC Bearings Incorporated (ROLL - Free Report) reported mixed fourth-quarter fiscal 2018 (ended March 2018) results.

Earnings and Revenues

Quarterly adjusted earnings came in at $1.08 per share, missing the Zacks Consensus Estimate of $1.13. However, the bottom line came in 20% higher than the year-ago tally.

Net sales in the reported quarter came in at $179.9 million, surpassing the Zacks Consensus Estimate of $175 million. In addition, the top line came in 12.3% higher than the year-ago figure.

Net sales also improved 13.5% year over year organically in the reported quarter. The upswing stemmed from strong demand secured from the industrial and aerospace end-markets.

Segmental Performance   

Plain Bearings revenues improved 12.8% year over year to $81.9 million, while Roller Bearings sales climbed 24.8% to $35.8 million. Ball Bearings sales came in at $19.1 million, up 15.7% year over year. Engineered Products sales inched up 1.6% year over year to $43.1 million.

Adjusted earnings for fiscal 2018 came in at $3.87 per share, missing the Zacks Consensus Estimate of $3.91. However, annual earnings improved 22.1% year over year.

Net sales in fiscal 2018 came in at $674.9 million, beating the Zacks Consensus Estimate of $669.8 million. The top line also improved 9.7% year over year. On an organic basis, revenues were up 10% year over year.

RBC Bearings Incorporated Price, Consensus and EPS Surprise

 

RBC Bearings Incorporated Price, Consensus and EPS Surprise | RBC Bearings Incorporated Quote

Costs and Margins

Cost of sales in the reported quarter came in at $110.2 million, up 13.6% year over year. Adjusted gross margin came in at 38.8%, contracting 70 basis points (bps) year over year.

Selling, general and administrative expenses during the quarter came in at $29.6 million, up 12.8% year over year. Adjusted operating margin came in at 21.3% during the fiscal fourth quarter, down 20 bps year over year.

For fiscal 2018, adjusted gross and operating margin shrunk 30 bps and 50 bps, respectively.

Other Financial Fundamentals

Existing the fiscal fourth quarter, RBC Bearings had cash and cash equivalents worth $54.2 million compared to $38.9 million recorded as of Apr 1, 2017.

In fiscal 2018, RBC Bearings generated $130.3 million of cash from its operating activities as against $101.2 million reported in the prior-year period. Capital spending escalated 33.9% year over year to $28 million.

In fiscal 2018, the company’s total debt came in at $173.4 million, lower than $269.8 million recorded as of Dec 31, 2016.

Outlook

RBC Bearings intends to boost its near-term competency on the back of sturdier industrial and aerospace sales. This Zacks Rank #3 (Hold) stock anticipates to generate revenues in the range of $171-$174 million in first-quarter fiscal 2019 (estimating year-over-year growth of 4.3-6.2%).

Stocks to Consider

Some better-ranked stocks in the same space are listed below:

Applied Industrial Technologies, Inc. (AIT - Free Report) sports a Zacks Rank #1 (Strong Buy). The company’s earnings per share (EPS) are predicted to grow 12%, in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here..

Graco Inc. (GGG - Free Report) also flaunts a Zacks Rank of 1. The company’s EPS is projected to be up 10.33%, over the next three to five years.

IDEX Corporation (IEX - Free Report) holds a Zacks Rank #2 (Buy). The company’s EPS is likely to be up 11%, during the same time frame.

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