Bearings manufacturer RBC Bearings (NYSE:RBC) will be reporting earnings tomorrow before the bell. Here’s what to look for.
RBC Bearings missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $397.9 million, up 3.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is RBC Bearings a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RBC Bearings’s revenue to grow 5.3% year on year to $393.9 million, in line with the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 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 six times over the last two years.
Looking at RBC Bearings’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Industrial posted flat year-on-year revenue, meeting analysts’ expectations, and Worthington reported a revenue decline of 8.1%, topping estimates by 1%. Worthington traded up 10.2% following the results.
Read our full analysis of Applied Industrial’s results here and Worthington’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 3.9% on average over the last month. RBC Bearings is up 4.5% during the same time and is heading into earnings with an average analyst price target of $340.60 (compared to the current share price of $311.13).
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