RBC Bearings Beats on EPS But GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

RBC Bearings (NAS: ROLL) reported earnings on May 29. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 30 (Q4), RBC Bearings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share didn't move. GAAP earnings per share shrank significantly.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
 RBC Bearings reported revenue of $103.0 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $105.5 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $111.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.69. The six earnings estimates compiled by S&P Capital IQ forecast $0.61 per share. Non-GAAP EPS of $0.69 were the same as the prior-year quarter. GAAP EPS of $0.46 for Q4 were 33% lower than the prior-year quarter's $0.69 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 39.5%, 250 basis points better than the prior-year quarter. Operating margin was 15.3%, 660 basis points worse than the prior-year quarter. Net margin was 10.3%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $106.0 million. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $435.3 million. The average EPS estimate is $2.83.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 145 members out of 151 rating the stock outperform, and six members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give RBC Bearings a green thumbs-up, and 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 $53.57.

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The article RBC Bearings Beats on EPS But GAAP Results Lag originally appeared on Fool.com.

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.

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