RBC Bearings Beats Analyst Estimates on EPS
RBC Bearings (NAS: ROLL) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), RBC Bearings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
RBC Bearings tallied revenue of $95.1 million. The five analysts polled by S&P Capital IQ hoped for sales of $94.4 million. GAAP sales were 17% higher than the prior-year quarter's $81.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The six earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.54 for Q3 were 64% higher than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 340 basis points better than the prior-year quarter. Operating margin was 19.1%, 410 basis points better than the prior-year quarter. Net margin was 12.8%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $103.0 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $388.9 million. The average EPS estimate is $2.12.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 108 members out of 112 rating the stock outperform, and four members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give RBC Bearings a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RBC Bearings is outperform, with an average price target of $44.
Over the decades, small-cap stocks like RBC Bearings have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add RBC Bearings to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.