RBC Bearings Q4 Earnings Surpass Estimates, Up Y/Y

RBC Bearings Incorporated's RBC fourth-quarter fiscal 2024 (ended March 2024) adjusted earnings of $2.47 per share beat the Zacks Consensus Estimate of $2.32. The figure increased 16% from the year-ago adjusted earnings of $2.13, supported by higher revenues.

Revenue Details

In the quarter under review, RBC Bearings' revenues were $413.7 million, which increased 4.9% year over year. However, the figure missed the Zacks Consensus Estimate of $416 million.
While exiting the reported quarter, RBC had a backlog of $726.1 million, up 9.4% year over year.
For fiscal 2024, the company's revenues came in at $1.56 billion, up 6.2% year over year. It reported adjusted earnings of $8.62, reflecting an increase of 15.2% on a year-over-year basis.

Segmental Details

The company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Industrial revenues of $271.4 million (representing 65.6% of the quarter's revenues) were down 0.4% year over year.
Aerospace/Defense revenues totaled $142.3 million (34.4%), up 16.8% 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

In the reported quarter, the company's cost of sales rose 3.2% year over year to $235.4 million. Gross profit grew 7.2% to $178.3 million. The margin expanded 90 basis points (bps) to 43.1%.
Selling, general and administrative expenses were $64.4 million, up 8.1% year over year. Adjusted EBITDA jumped 7.4% to $130.1 million. The adjusted EBITDA margin was 31.4%, up 70 bps year over year.
Adjusted operating income increased 8.6% year over year to $96.3 million. The adjusted margin increased 80 bps to 23.3%. Net interest expenses were $18.8 million compared with $21.7 million in the year-ago quarter.

Balance Sheet and Cash Flow

At the time of exiting the fiscal fourth quarter, RBC had cash and cash equivalents of $63.5 million compared with $65.4 million at the end of the year-ago fiscal quarter. Total debt was $1.19 billion, down from $1.40 billion at the end of the year-earlier fiscal quarter.
In fiscal 2024, the company generated net cash of $274.7 million from operating activities, which increased 24.5% on a year-over-year basis. Capital expenditure of $33.2 million decreased 21% year over year.
In fiscal 2024, RBC Bearings repurchased shares worth $11 million, up 41.4% year over year.

Outlook

For the first quarter of fiscal 2025, management anticipates net sales in the range of $415-$420 million, suggesting a climb of 7.2-8.5% from the prior-year figure of $387.1 million.

Zacks Rank & Other Stocks to Consider

RBC currently carries a Zacks Rank #2 (Buy).
Some other top-ranked companies from the same space are discussed below:
Luxfer Holdings LXFR presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 122.5%.
The Zacks Consensus Estimate for LXFR's 2024 earnings has increased 13.5% in the past 60 days.
Crane Company CR presently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR's 2024 earnings has risen 3.3%.
Tennant Company TNC currently carries a Zacks Rank of 2. TNC delivered a trailing four-quarter average earnings surprise of 38%.
In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has inched up 1.9%.

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