RBC Bearings Q3 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy RBC?
Source: seekingalpha
- Strong Performance: RBC Bearings reported a Q3 non-GAAP EPS of $3.04, beating expectations by $0.18, indicating robust profitability growth for the company.
- Revenue Growth: The company achieved revenues of $461.6 million in Q3, a 17.0% year-over-year increase, with $29.2 million attributed to the VACCO acquisition, demonstrating the effectiveness of its acquisition strategy in driving sales.
- Segment Performance: The Industrial segment saw a 3.1% increase in net sales, while the Aerospace/Defense segment surged by 41.5%, highlighting the company's strong performance in high-demand sectors and further solidifying its market position.
- Future Outlook: RBC expects Q4 net sales to range between $495 million and $505 million, although below the consensus of $508.89 million, still reflecting a growth of 13.1% to 15.4% compared to last year, showcasing ongoing growth potential.
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Analyst Views on RBC
Wall Street analysts forecast RBC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RBC is 517.80 USD with a low forecast of 485.00 USD and a high forecast of 542.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 520.160
Low
485.00
Averages
517.80
High
542.00
Current: 520.160
Low
485.00
Averages
517.80
High
542.00
About RBC
RBC Bearings Incorporated is an international manufacturer and marketer of engineered precision bearings, components and essential systems. It is focused on producing technical or regulated bearing products and components requiring design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense channels. Its segments include Aerospace/Defense and Industrial. The Aerospace/Defense segment represents the end markets for the Company’s engineered bearings and precision components used in commercial aerospace, defense aerospace, defense marine, defense ground vehicles, missiles and guided munitions, and space and satellite applications. The Industrial segment represents the end markets for the Company’s engineered bearings, gearing and precision components used in various industrial applications, including construction, mining, forestry, energy, agricultural and other machinery. The Company also offers engineered mission-critical components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RBC Bearings Reports Strong Q3 2026 Earnings with Robust A&D Growth
- Significant Sales Growth: RBC Bearings reported net sales of $461 million for Q3 2026, marking a 17% year-over-year increase, primarily driven by strong performance in the Aerospace & Defense (A&D) segment, which saw a 41.5% rise, highlighting the company's competitive edge in a rapidly growing market.
- Margin Improvement: The company reported a gross margin of 44.3%, reflecting a 16.9% increase compared to the same period last year, indicating successful cost control and pricing strategies that further enhance financial health.
- Strong Cash Flow: Free cash flow reached $99.1 million, demonstrating operational efficiency, while the company paid down $81 million in debt during the quarter, showcasing robust financial management.
- Optimistic Outlook: Management anticipates Q4 revenues between $495 million and $505 million, representing year-over-year growth of 13.1% to 15.4%, with projected gross margins of 45% to 45.25%, reflecting confidence in future growth.
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RBC Bearings Q3 Earnings Exceed Expectations
- Strong Performance: RBC Bearings reported a Q3 non-GAAP EPS of $3.04, beating expectations by $0.18, indicating robust profitability growth for the company.
- Revenue Growth: The company achieved revenues of $461.6 million in Q3, a 17.0% year-over-year increase, with $29.2 million attributed to the VACCO acquisition, demonstrating the effectiveness of its acquisition strategy in driving sales.
- Segment Performance: The Industrial segment saw a 3.1% increase in net sales, while the Aerospace/Defense segment surged by 41.5%, highlighting the company's strong performance in high-demand sectors and further solidifying its market position.
- Future Outlook: RBC expects Q4 net sales to range between $495 million and $505 million, although below the consensus of $508.89 million, still reflecting a growth of 13.1% to 15.4% compared to last year, showcasing ongoing growth potential.
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RBC Bearings Set to Release Q3 Earnings on February 5
- Earnings Announcement: RBC Bearings is set to announce its Q3 earnings on February 5 before market open, with a consensus EPS estimate of $2.86, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The expected revenue for Q3 is $460.36 million, representing a 1.1% year-over-year increase, indicating stability in the company's market position, which could help maintain investor interest.
- Historical Performance: Over the past two years, RBC Bearings has beaten EPS estimates 75% of the time and revenue estimates 38% of the time, suggesting relative stability in profitability that may attract more investor attention.
- Estimate Revisions: In the last three months, EPS estimates have seen 6 upward revisions and no downward revisions, while revenue estimates have experienced 3 upward and 3 downward revisions, reflecting varying market perceptions of the company's future performance.
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RBC Bearings to Release Q3 FY2026 Financial Results on February 5
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- Conference Call Details: The company will host a conference call at 11:00 AM ET on February 5, featuring Chairman and CEO Michael J. Hartnett and other executives recapping quarterly performance, aimed at enhancing investor understanding of operations.
- Webcast Access: Investors can access the webcast through the investor relations section of the company's website, demonstrating RBC Bearings' efforts in digital communication to ensure widespread information dissemination.
- Replay Availability: An audio replay of the conference call will be available from 2:00 PM ET on the day of the call and will remain accessible for two weeks, ensuring that investors who could not participate live can still obtain key information.
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RBC Bearings Reports Strong Q3 2026 Earnings with Robust A&D Growth
- Significant Sales Growth: RBC Bearings reported net sales of $461 million for Q3 2026, marking a 17% year-over-year increase, primarily driven by strong performance in the Aerospace & Defense (A&D) segment, which saw a 41.5% rise, highlighting the company's competitive edge in a rapidly growing market.
- Margin Improvement: The company reported a gross margin of 44.3%, reflecting a 16.9% increase compared to the same period last year, indicating successful cost control and pricing strategies that further enhance financial health.
- Strong Cash Flow: Free cash flow reached $99.1 million, demonstrating operational efficiency, while the company paid down $81 million in debt during the quarter, showcasing robust financial management.
- Optimistic Outlook: Management anticipates Q4 revenues between $495 million and $505 million, representing year-over-year growth of 13.1% to 15.4%, with projected gross margins of 45% to 45.25%, reflecting confidence in future growth.
See More
RBC Bearings Q3 Earnings Exceed Expectations
- Strong Performance: RBC Bearings reported a Q3 non-GAAP EPS of $3.04, beating expectations by $0.18, indicating robust profitability growth for the company.
- Revenue Growth: The company achieved revenues of $461.6 million in Q3, a 17.0% year-over-year increase, with $29.2 million attributed to the VACCO acquisition, demonstrating the effectiveness of its acquisition strategy in driving sales.
- Segment Performance: The Industrial segment saw a 3.1% increase in net sales, while the Aerospace/Defense segment surged by 41.5%, highlighting the company's strong performance in high-demand sectors and further solidifying its market position.
- Future Outlook: RBC expects Q4 net sales to range between $495 million and $505 million, although below the consensus of $508.89 million, still reflecting a growth of 13.1% to 15.4% compared to last year, showcasing ongoing growth potential.
See More
RBC Bearings Set to Release Q3 Earnings on February 5
- Earnings Announcement: RBC Bearings is set to announce its Q3 earnings on February 5 before market open, with a consensus EPS estimate of $2.86, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The expected revenue for Q3 is $460.36 million, representing a 1.1% year-over-year increase, indicating stability in the company's market position, which could help maintain investor interest.
- Historical Performance: Over the past two years, RBC Bearings has beaten EPS estimates 75% of the time and revenue estimates 38% of the time, suggesting relative stability in profitability that may attract more investor attention.
- Estimate Revisions: In the last three months, EPS estimates have seen 6 upward revisions and no downward revisions, while revenue estimates have experienced 3 upward and 3 downward revisions, reflecting varying market perceptions of the company's future performance.
See More
RBC Bearings to Release Q3 FY2026 Financial Results on February 5
- Earnings Release Schedule: RBC Bearings is set to announce its Q3 FY2026 financial results before the market opens on February 5, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 11:00 AM ET on February 5, featuring Chairman and CEO Michael J. Hartnett and other executives recapping quarterly performance, aimed at enhancing investor understanding of operations.
- Webcast Access: Investors can access the webcast through the investor relations section of the company's website, demonstrating RBC Bearings' efforts in digital communication to ensure widespread information dissemination.
- Replay Availability: An audio replay of the conference call will be available from 2:00 PM ET on the day of the call and will remain accessible for two weeks, ensuring that investors who could not participate live can still obtain key information.
See More
Stocks to Consider Buying in 2026: Insights from Our Roundtable Experts, Including DoorDash and LVMH
Stock Picks Overview: The second installment of the 2026 Barron’s Roundtable features 30 stock picks from five investment experts, highlighting both well-known companies and lesser-known options.
Familiar Names Included: Among the stock picks are recognizable brands such as Home Depot, Starbucks, and Nike, indicating a mix of established and emerging investment opportunities.
Biodegradable Innovation: The article hints at a British company that has recently acquired a manufacturer of biodegradable sneaker midsoles, showcasing a trend towards sustainable products in the footwear industry.
Investment Insights: The Roundtable serves as a platform for sharing diverse investment strategies and insights, appealing to both seasoned investors and those looking to explore new market trends.
See More
Trump Proposes Ban on Large Investors Buying Homes, Family Offices May Be Affected
- Family Office Investment Landscape: A survey by Campden Wealth and RBC Wealth Management reveals that 75% of family offices in North America invest in real estate, with an average allocation of 18%, indicating their significant role in the real estate market, particularly with residential properties comprising nearly one-third of their holdings.
- Policy Impact Analysis: Trump's proposed ban primarily targets institutional investors owning over 1,000 properties, yet the lack of a clear definition for large institutional investors could inadvertently affect many wealthy families, especially those active in real estate development.
- Complexity of Family Office Structures: Michael Cole highlights that there is no single legal entity for family offices, complicating the assessment of their exposure to the proposed ban, particularly given the diversity in investment strategies and asset allocations.
- Uncertain Future Policy Direction: While family offices may not be immediately impacted, the ongoing political focus raises questions about whether other investor types will be targeted, which could significantly influence family offices' investment decisions and market strategies.
See More
