RBC Earnings Prediction
The chart below shows how RBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RBC sees a -0.16% change in stock price 10 days leading up to the earnings, and a +3.50% change 10 days following the report. On the earnings day itself, the stock moves by +0.77%. This data can give you a slight idea of what to expect for the next quarter's release.
RBC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
413.70M
4.89%
10.64%
Gross Margin
38.84%
2.91%
3.52%
Operating Margin
23.47%
4.13%
16.53%
Net Margin
14.89%
19.41%
19.50%
EPS
1.91
28.19%
36.43%
No Data Available
RBC Earnings Analysis
RBC Bearings Inc Corporation (RBC.N) Earnings Conference Call
Positive
Sales Growth Overview: Net sales increased by 5.5% year-over-year to $394 million, driven by strong performance in the Aerospace and Defense segment, which saw a 10.7% growth overall.
Adjusted Net Income Increase: Adjusted net income rose by 34.7% year-over-year to $73 million, resulting in an adjusted EPS of $2.34, a 26.5% increase from the previous year.
Gross Margin Improvement: Gross margin improved to $175 million, representing 44.3% of sales, a 205 basis point increase year-over-year, attributed to increased absorption of aerospace and defense capacity and ongoing synergies with Dodge.
Free Cash Flow Increase: Free cash flow for the quarter was $74 million, up from $71 million last year, demonstrating strong cash generation capabilities and effective cash management.
Debt Reduction Impact: Debt reduction of $100 million during the quarter led to a trailing net leverage of 1.8 turns, positioning the company favorably for future growth and M&A opportunities.
Negative
Sales Growth Slowdown: Net sales growth was only 5.5%, indicating a slowdown compared to previous quarters, particularly in the industrial segment where OEM sales declined by 8.2%.
OEM Business Contraction: The industrial segment's OEM business experienced a significant contraction, primarily due to an 8.2% decline in the oil and gas category, which negatively impacted overall industrial growth.
Aerospace Sales Growth Challenges: Despite a 10.7% increase in Aerospace and Defense sales, the defense growth was limited by capacity constraints rather than demand, suggesting potential future revenue challenges if capacity issues persist.
Free Cash Flow Decline: Free cash flow decreased to $7.36 million, down from $7.09 million year-over-year, indicating a decline in cash generation efficiency despite overall revenue growth.
Cautious Revenue Growth Outlook: The guidance for future revenues is projected to grow only 4.9% to 7.3%, reflecting a cautious outlook amid ongoing macroeconomic challenges and potential headwinds in the industrial sector.
RBC FAQs
How does RBC typically perform around its earnings report dates?
Is RBC Bearings Inc (RBC) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RBC Earning Call Sentiment
Earnings call transcript: RBC Bearings Q4 2024 beats EPS forecast, stock surges
RBC.N
0.26%Positive
The earnings call reveals strong financial performance, with significant debt reduction, increased net sales, and improved margins. Despite competitive pressures and expansion risks, the company maintains growth in key sectors, particularly Aerospace and Defense. The Q&A section highlights management's confidence in handling tariffs and capacity expansion. Optimistic guidance and removal of preferred dividends further boost sentiment. However, uncertainties in oil and gas spending pose a minor concern. Overall, the positive financial metrics and strategic initiatives suggest a likely stock price increase in the next two weeks.
