The 10-second takeaway
For the quarter ended Sep. 29 (Q2), RBC Bearings missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew significantly.
Margins increased across the board.
RBC Bearings logged revenue of $100.4 million. The five analysts polled by S&P Capital IQ expected sales of $104.0 million on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $97.8 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 $0.60. The six earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.73 for Q2 were 40% higher than the prior-year quarter's $0.52 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 37.4%, 260 basis points better than the prior-year quarter. Operating margin was 21.1%, 240 basis points better than the prior-year quarter. Net margin was 16.4%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $104.4 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $434.5 million. The average EPS estimate is $2.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 141 members out of 146 rating the stock outperform, and five members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give RBC Bearings a green thumbs-up, and one 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 $51.57.
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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. 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.