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RBC Bearings Incorporated’s (RBC - Free Report) first-quarter fiscal 2025 (ended June 2024) adjusted earnings of $2.54 per share beat the Zacks Consensus Estimate of $2.37. The figure increased 19.2% from year-ago adjusted earnings of $2.13 per share, supported by higher revenues.
Revenue Details
RBC Bearings’ revenues were $406.3 million, which increased 5% year over year. However, the figure missed the Zacks Consensus Estimate of $417 million.
While exiting the reported quarter, RBC had a backlog of $825.8 million compared with $821.5 million reported at the end of the fourth quarter of fiscal 2024 (ended March 30, 2024).
Segmental Details
The company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal first quarter is briefly discussed below:
Industrial revenues of $257.2 million (representing 63% of the quarter’s revenues) were down 3.5% year over year.
Aerospace/Defense revenues totaled $149.1 million (37%), up 23.7% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
The company’s cost of sales rose 1.4% year over year to $222.3 million. Gross profit grew 9.6% to $184.0 million. The margin expanded 190 basis points (bps) to 45.3%.
Selling, general and administrative expenses were $67.6 million, up 4.5% year over year. Adjusted EBITDA jumped 11.3% to $134.0 million. The adjusted EBITDA margin was 33%, up 190 bps year over year.
Adjusted operating income increased 14.3% year over year to $97.5 million. The adjusted margin increased 200 bps to 24%. Net interest expenses were $17.2 million compared with $20.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
At the time of exiting the fiscal first quarter, RBC had cash and cash equivalents of $76.8 million compared with $63.5 million at the end of the year-ago fiscal quarter. Total debt was $1.13 billion, down from $1.19 billion at the end of the year-earlier fiscal quarter.
In the first three months of fiscal 2025, the company generated net cash of $97.4 million from operating activities, which increased 57.9% on a year-over-year basis. Capital expenditure of $9 million increased 34.3% year over year.
In the first three months of fiscal 2025, RBC Bearings repurchased shares worth $8 million, up 17.7% year over year.
Outlook
For the fiscal second quarter, management anticipates net sales of $395.0-$405.0 million, indicating an increase of 2.4-5% from the prior-year reported figure of $385.6 million.
Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.
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RBC Bearings (RBC) Q1 Earnings Surpass Estimates, Rise Y/Y
RBC Bearings Incorporated’s (RBC - Free Report) first-quarter fiscal 2025 (ended June 2024) adjusted earnings of $2.54 per share beat the Zacks Consensus Estimate of $2.37. The figure increased 19.2% from year-ago adjusted earnings of $2.13 per share, supported by higher revenues.
Revenue Details
RBC Bearings’ revenues were $406.3 million, which increased 5% year over year. However, the figure missed the Zacks Consensus Estimate of $417 million.
While exiting the reported quarter, RBC had a backlog of $825.8 million compared with $821.5 million reported at the end of the fourth quarter of fiscal 2024 (ended March 30, 2024).
Segmental Details
The company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal first quarter is briefly discussed below:
Industrial revenues of $257.2 million (representing 63% of the quarter’s revenues) were down 3.5% year over year.
Aerospace/Defense revenues totaled $149.1 million (37%), up 23.7% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote
Margin Profile
The company’s cost of sales rose 1.4% year over year to $222.3 million. Gross profit grew 9.6% to $184.0 million. The margin expanded 190 basis points (bps) to 45.3%.
Selling, general and administrative expenses were $67.6 million, up 4.5% year over year. Adjusted EBITDA jumped 11.3% to $134.0 million. The adjusted EBITDA margin was 33%, up 190 bps year over year.
Adjusted operating income increased 14.3% year over year to $97.5 million. The adjusted margin increased 200 bps to 24%. Net interest expenses were $17.2 million compared with $20.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
At the time of exiting the fiscal first quarter, RBC had cash and cash equivalents of $76.8 million compared with $63.5 million at the end of the year-ago fiscal quarter. Total debt was $1.13 billion, down from $1.19 billion at the end of the year-earlier fiscal quarter.
In the first three months of fiscal 2025, the company generated net cash of $97.4 million from operating activities, which increased 57.9% on a year-over-year basis. Capital expenditure of $9 million increased 34.3% year over year.
In the first three months of fiscal 2025, RBC Bearings repurchased shares worth $8 million, up 17.7% year over year.
Outlook
For the fiscal second quarter, management anticipates net sales of $395.0-$405.0 million, indicating an increase of 2.4-5% from the prior-year reported figure of $385.6 million.
Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Industrial Companies
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.