RBC Bearings Incorporated’s RBC third-quarter fiscal 2025 (ended Dec. 28, 2024) adjusted earnings of $2.34 per share beat the Zacks Consensus Estimate of $2.20. The figure increased 26.5% from the year-ago adjusted earnings of $1.85 per share, supported by higher revenues.
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RBC’s Revenue Details
RBC Bearings’ revenues were $394.4 million, which increased 5.5% year over year. However, the figure missed the Zacks Consensus Estimate of $401 million.
While exiting the reported quarter, RBC had a backlog of $896.5 million compared with $864 million reported at the end of the second quarter of fiscal 2025 (ended Sept. 28, 2024).
RBC Bearings’ Segmental Details
The company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal third quarter is briefly discussed below:
Industrial revenues of $143.2 million (representing 63.7% of the quarter’s revenues) were up 2.7% year over year.
Aerospace/Defense revenues totaled $149.1 million (36.3%), up 10.8% year over year.
RBC Bearings Incorporated Price, Consensus and EPS Surprise
RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote
RBC’s Margin Profile
The company’s cost of sales rose 1.7% year over year to $219.5 million. Gross profit grew 10.7% to $174.9 million. The margin expanded 200 basis points (bps) to 44.3%.
Selling, general and administrative expenses were $70.1 million, up 9.7% year over year. Adjusted EBITDA jumped 12% to $122.6 million. The adjusted EBITDA margin was 31.1%, up 180 bps year over year.
Adjusted operating income increased 13.7% year over year to $85.7 million. The adjusted margin increased 150 bps to 21.7%. Net interest expenses were $14.2 million compared with $19.3 million in the year-ago quarter.
RBC Bearings’ Balance Sheet and Cash Flow
At the time of exiting the fiscal third quarter, RBC had cash and cash equivalents of $60.6 million compared with $63.5 million at the end of the year-ago fiscal quarter. Long-term debt (less current portion) was $999.7 million, down from $1.19 billion at the end of the year-earlier fiscal quarter.
In the first nine months of fiscal 2025, the company generated net cash of $224.4 million from operating activities, which increased 15% on a year-over-year basis. Capital expenditure of $35.6 million increased 50.2% year over year.
In the first nine months of fiscal 2025, RBC Bearings repurchased shares worth $8.6 million, up 13.2% year over year.
RBC’s Outlook
For the fiscal fourth quarter, management anticipates net sales to be in the range of $434-$444 million, indicating an increase of 4.9-7.3% from the prior-year figure of $413.7 million.
RBC Bearings’ Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.
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