Bearings manufacturer RBC Bearings (NYSE: RBC) will be announcing earnings results this Friday before market open. Here’s what you need to know.
RBC Bearings met analysts’ revenue expectations last quarter, reporting revenues of $461.6 million, up 17% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income 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 15.7% year on year, improving from the 5.8% 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 to 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 engineered components and systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Arrow Electronics delivered year-on-year revenue growth of 39%, beating analysts’ expectations by 12.9%, and Mayville Engineering reported revenues up 6.8%, topping estimates by 3.7%. Arrow Electronics traded up 1.6% following the results while Mayville Engineering was also up 2.6%.
Read our full analysis of Arrow Electronics’s results here and Mayville Engineering’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 2.4% on average over the last month. RBC Bearings is up 3.5% during the same time and is heading into earnings with an average analyst price target of $598.71 (compared to the current share price of $619.33).
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