Bearings manufacturer RBC Bearings (NYSE:RBC) will be reporting earnings this Friday before market open. Here's what to look for.
RBC Bearings beat analysts' revenue expectations last quarter, reporting revenues of $519.5 million, up 19.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts' EBITDA estimates and a beat of analysts' EPS 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 13% year on year, slowing from the 14.4% 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 engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. NN delivered year-on-year revenue growth of 26.2%, beating analysts' expectations by 11%, and Worthington reported revenues up 13.2%, topping estimates by 4.1%. Worthington traded up 1.3% following the results.
Read our full analysis of NN's results here and Worthington'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 engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.6% on average over the last month. RBC Bearings is down 5.9% during the same time and is heading into earnings with an average analyst price target of $618.89 (compared to the current share price of $472.28).
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