RBC Bearings (NYSE:RBC) Posts Earnings Results, Beats Estimates By $0.46 EPS

RBC Bearings (NYSE:RBC) released its quarterly earnings results on Friday. The industrial products company reported $3.88 EPS for the quarter, topping analysts’ consensus estimates of $3.42 by $0.46, Briefing.com reports. RBC Bearings had a net margin of 15.37% and a return on equity of 11.35%. The firm had revenue of $519.50 million during the quarter, compared to analysts’ expectations of $508.92 million. During the same period in the previous year, the company earned $2.84 EPS. The firm’s revenue for the quarter was up 19.2% compared to the same quarter last year.

Here are the key takeaways from RBC Bearings’ conference call:

• Positive Sentiment: RBC Bearings reported a strong fiscal first quarter, with sales up 19.2% year over year to $519.5 million, adjusted EPS up 36.6% to $3.88, and adjusted EBITDA up 28.1% to $181.2 million.
• Positive Sentiment: Aerospace and defense sales increased 36.9%, including strong commercial aerospace and defense growth, while the space business generated $25 million in first-quarter revenue and now serves more than a dozen customers.
• Positive Sentiment: Industrial demand remained broad-based, with OEM revenue up 21.5% and growth across aggregate and cement, food and beverage, warehousing, semiconductors, and grain markets; management said the trend continued into July.
• Positive Sentiment: Strong free cash flow of $146.9 million enabled $77 million of debt repayment during the quarter, followed by another $50 million afterward; the company remains on track to repay its remaining term loan by November 2026.
• Negative Sentiment: Second-quarter guidance calls for lower adjusted gross margins of 45.5%–45.75%, partly reflecting the absence of approximately 100 basis points from one-time tariff refunds, contract-related benefits, and normal seasonal effects. Marine shipments were also constrained by supply-chain issues, although management expects significant improvement in the second half of the fiscal year.

RBC Bearings Trading Down 1.6%

RBC traded down $9.14 during trading on Friday, hitting $552.76. 413,177 shares of the stock were exchanged, compared to its average volume of 207,387. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.78 and a current ratio of 2.18. The firm has a 50 day simple moving average of $597.68 and a 200 day simple moving average of $570.46. The firm has a market cap of $17.50 billion, a price-to-earnings ratio of 60.81, a P/E/G ratio of 3.20 and a beta of 1.40. RBC Bearings has a 1 year low of $364.50 and a 1 year high of $667.69.

Insider Transactions at RBC Bearings

In related news, Director Edward Stewart sold 600 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $592.83, for a total value of $355,698.00. Following the completion of the sale, the director directly owned 21,337 shares of the company’s stock, valued at $12,649,213.71. This represents a 2.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dolores J. Ennico sold 600 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $636.11, for a total transaction of $381,666.00. Following the transaction, the director directly owned 7,254 shares in the company, valued at $4,614,341.94. This trade represents a 7.64% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,425 shares of company stock valued at $885,400. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On RBC Bearings

A number of hedge funds and other institutional investors have recently modified their holdings of RBC. Advisors Asset Management Inc. bought a new position in RBC Bearings in the first quarter worth approximately $26,000. Larson Financial Group LLC increased its holdings in shares of RBC Bearings by 148.5% in the 3rd quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company’s stock valued at $32,000 after acquiring an additional 49 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of RBC Bearings by 123.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 96 shares of the industrial products company’s stock worth $37,000 after acquiring an additional 53 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of RBC Bearings in the 3rd quarter worth $55,000. Finally, Danske Bank A S purchased a new stake in shares of RBC Bearings during the 3rd quarter worth $78,000.

Key Headlines Impacting RBC Bearings

Here are the key news stories impacting RBC Bearings this week:

• Positive Sentiment: RBC Bearings reported fiscal Q1 2027 adjusted earnings of $3.88 per share, well above the $3.42 analyst consensus and up from $2.84 in the prior-year quarter. Revenue rose 19.2% year over year to $519.5 million, exceeding expectations of $508.9 million. RBC Bearings Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management said it is targeting repayment of the company’s term loan by November 2026. Eliminating the loan could reduce interest expense and strengthen RBC Bearings’ balance sheet, although it will also use available cash. RBC Bearings forecasts Q2 FY2027 revenue and term loan payoff
• Neutral Sentiment: For fiscal Q2 2027, RBC Bearings forecast revenue of $505 million to $515 million. The midpoint of $510 million is close to, but slightly below, the $513.7 million consensus estimate, indicating expectations for continued growth but limited near-term upside versus Wall Street forecasts. RBC Bearings Q2 FY2027 revenue forecast
• Negative Sentiment: The guidance appears to be the main source of investor caution: despite the earnings and revenue beats, the forecast does not clearly exceed analysts’ expectations. With RBC Bearings trading at a relatively high valuation, investors may be demanding stronger forward growth, contributing to the stock’s decline.

Analysts Set New Price Targets

A number of research firms have recently commented on RBC. Wall Street Zen cut RBC Bearings from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. Truist Financial restated a “buy” rating and set a $615.00 price objective (up from $599.00) on shares of RBC Bearings in a report on Tuesday, May 19th. Weiss Ratings lowered RBC Bearings from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday. Zacks Research lowered shares of RBC Bearings from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. Finally, Morgan Stanley upped their price target on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an “overweight” rating in a report on Tuesday, May 19th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $584.00.

About RBC Bearings

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company’s product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company’s bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.