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RBC Bearings' (ROLL) Q1 Earnings Beat, Revenues In Line

RBC Bearings Incorporated ROLL reported better-than-expected results in first-quarter fiscal 2019 (ended June 2018).

Earnings/Revenues

Quarterly adjusted earnings came in at $1.15 per share, up 26.4% year over year. The bottom line also outpaced the Zacks Consensus Estimate of $1.04.

Net sales in the reported quarter came in at $176 million, up 7.4% year over year. However, quarterly revenues came in line with the Zacks Consensus Estimate. Notably, revenues improved 9.4% year over year, organically.

Segmental Break-Up

Revenues in the Plain bearings segment were $78.5 million, up 8.1% year over year. The Roller bearings segment's top-line performance improved 14.2% year over year to $35.9 million. Quarterly revenues in the Ball bearings segment came in at $18.1 million, up 14.5% year over year. However, the Engineered products segment's revenues came in at $43.5 million, down 1.2% year over year.

RBC Bearings Incorporated Price, Consensus and EPS Surprise

RBC Bearings Incorporated Price, Consensus and EPS Surprise | RBC Bearings Incorporated Quote

Costs/Margins

Cost of sales in the reported quarter came in at $108.2 million, up 6.2% year over year. Adjusted gross margin was 38.5%, up 70 basis points (bps) year over year.

Aggregate operating expenses in the fiscal first quarter were $31.7 million, up from $30.1 million recorded in the year-ago quarter. Adjusted operating margin in the quarter was 20.5%, up 100 bps year over year.

Balance Sheet/Cash Flow

Exiting the fiscal first quarter, RBC Bearings had cash and cash equivalents of $55.7 million, up from $54.2 million recorded as of Mar 31, 2018. Long-term debt was $143.8 million, down from $154.1 million recorded at the end of fiscal 2018.

In the first three months of fiscal 2019, the company generated $33.8 million cash from operating activities, down from $39.8 million recorded in the year-ago period. Capital expenditures totaled $7 million, up from $5.7 million incurred in the year-earlier tally.

Outlook

RBC Bearings intends to boost its near-term competency on the back of sturdier industrial and aerospace sales. The company anticipates generating revenues of $171-$174 million in second-quarter fiscal 2019 (estimating year-over-year growth of 4.1-5.9%).

Zacks Rank and Other Stocks to Consider

RBC Bearings currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the Zacks Industrial Products sector are listed below:

Altra Industrial Motion Corp. AIMC currently sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% over the last four quarters. You can see the complete list of today's Zacks Rank #1 Rank stocks here .

Chart Industries, Inc. GTLS also flaunts a Zacks Rank of 1. The company recorded an average positive earnings surprise of 29.36% over the trailing four quarters.

Barnes Group, Inc. B holds a Zacks Rank #2 (Buy). The company came up with an average positive earnings surprise of 6.88% during the same time frame.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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