Bearings manufacturer RBC Bearings (NYSE: RBC) will be reporting results this Friday before market open. Here’s what to look for.
RBC Bearings beat analysts’ revenue expectations last quarter, reporting revenues of $518 million, up 18.3% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
Is RBC Bearings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RBC Bearings’s revenue to grow 16.7% year on year, improving from the 7.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RBC Bearings has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RBC Bearings’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 16.9%, missing analysts’ expectations by 4%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Worthington’s stock price was unchanged after the resultswhile GE Aerospace was down 3.2%.
Read our full analysis of Worthington’s results here and GE Aerospace’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.1% on average over the last month. RBC Bearings is down 14.6% during the same time and is heading into earnings with an average analyst price target of $620 (compared to the current share price of $550.08).
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