RBC Bearings (NYSE:RBC) Posts Earnings Results

RBC Bearings (NYSE:RBC) posted its earnings results on Friday. The industrial products company reported $3.88 earnings per share for the quarter, topping analysts’ consensus estimates of $3.42 by $0.46, Briefing.com reports. RBC Bearings had a return on equity of 11.35% and a net margin of 15.37%.The firm had revenue of $519.50 million for the quarter, compared to the consensus estimate of $508.92 million. During the same quarter in the prior year, the business earned $2.84 EPS. The business’s revenue for the quarter was up 19.2% on a year-over-year basis.

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 Stock Down 1.6%

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

RBC Bearings News Summary

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.

Analyst Upgrades and Downgrades

RBC has been the topic of several research reports. Zacks Research lowered RBC Bearings from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Wall Street Zen lowered RBC Bearings from a “buy” rating to a “hold” rating in a research report on Saturday, June 27th. Weiss Ratings cut shares of RBC Bearings from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday. Morgan Stanley upped their target price on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 19th. Finally, Truist Financial reissued a “buy” rating and set a $615.00 price target (up from $599.00) on shares of RBC Bearings in a research report on Tuesday, May 19th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $584.00.

Insider Transactions at RBC Bearings

In other news, VP John J. Feeney sold 225 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $657.94, for a total value of $148,036.50. Following the sale, the vice president directly owned 2,378 shares of the company’s stock, valued at approximately $1,564,581.32. This represents a 8.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Edward Stewart sold 600 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $592.83, for a total value of $355,698.00. Following the transaction, the director owned 21,337 shares of the company’s stock, valued at $12,649,213.71. The trade was a 2.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,425 shares of company stock valued at $885,400. Insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Advisors Asset Management Inc. purchased a new stake in shares of RBC Bearings during the first quarter valued at approximately $26,000. Larson Financial Group LLC increased its position in shares of RBC Bearings by 148.5% during the third 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 in the last quarter. EverSource Wealth Advisors LLC raised its holdings in 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 during the last quarter. Measured Wealth Private Client Group LLC bought a new position in RBC Bearings in the 3rd quarter valued at approximately $55,000. Finally, Danske Bank A S bought a new position in RBC Bearings in the 3rd quarter valued at approximately $78,000.

RBC Bearings Company Profile

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.