The 10-second takeaway
For the quarter ended Dec. 29 (Q3), RBC Bearings missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Gross margins increased, operating margins increased, net margins shrank.
RBC Bearings booked revenue of $96.3 million. The five analysts polled by S&P Capital IQ predicted a top line of $100.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.53. The six earnings estimates compiled by S&P Capital IQ forecast $0.59 per share. GAAP EPS of $0.53 for Q3 were 1.9% lower than the prior-year quarter's $0.54 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 37.7%, 230 basis points better than the prior-year quarter. Operating margin was 19.9%, 80 basis points better than the prior-year quarter. Net margin was 12.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $118.2 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $424.4 million. The average EPS estimate is $2.58.
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 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $51.71.
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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.