RBC Bearings Beats on Both Top and Bottom Lines
RBC Bearings (NAS: ROLL) reported earnings on May 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), RBC Bearings beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
RBC Bearings recorded revenue of $111.3 million. The five analysts polled by S&P Capital IQ looked for a top line of $103.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $88.9 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 $0.69. The six earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.69 for Q4 were 57% higher than the prior-year quarter's $0.44 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 37.0%, 290 basis points better than the prior-year quarter. Operating margin was 21.6%, 350 basis points better than the prior-year quarter. Net margin was 13.9%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $104.8 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $439.1 million. The average EPS estimate is $2.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 144 members out of 149 rating the stock outperform, and five members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give RBC Bearings a green thumbs-up, and two give 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 $48.86.
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. The Motley Fool owns shares of RBC Bearings. 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.