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.
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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 of Motley 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.