Bearings manufacturer RBC Bearings (NYSE: RBC) will be announcing earnings results this Friday before the bell. Here’s what investors should know.
RBC Bearings beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $436 million, up 7.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter beating analysts’ expectations.
Is RBC Bearings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RBC Bearings’s revenue to grow 13.2% year on year to $450.3 million, improving from the 3.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RBC Bearings has missed Wall Street’s revenue estimates five times over the last two years.
Looking at RBC Bearings’s peers in the engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Timken delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 3.6%, and Applied Industrial reported revenues up 9.2%, topping estimates by 1.1%. Applied Industrial traded down 2.3% following the results.
Read our full analysis of Timken’s results here and Applied Industrial’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 2.3% on average over the last month. RBC Bearings is up 4.8% during the same time and is heading into earnings with an average analyst price target of $453.17 (compared to the current share price of $408.94).
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