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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