Back to top

Image: Bigstock

RBC Bearings (ROLL) Q2 Earnings Top Estimates, Revenues Miss

Read MoreHide Full Article

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.

RBC Bearings Incorporated Price, Consensus and EPS Surprise

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

Segmental Break-Up

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>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Applied Industrial Technologies, Inc. (AIT) - free report >>

Graco Inc. (GGG) - free report >>

Luxfer Holdings PLC (LXFR) - free report >>

Published in