Rbc Bearings Stock Fair Value – RBC Bearings Beats Expectations with Non-GAAP EPS of $2.13 & Revenue of $394.4M

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RBC ($NYSE:RBC) Bearings Incorporated is a leading provider of bearing products and services to various industries worldwide. They specialize in designing, engineering, and manufacturing of precision, standard, and customized bearing solutions for both the Aerospace and Industrial markets. This exceeded analysts’ expectations by $0.27 and $14.48M respectively. The company reported an increase in sales from the prior year’s quarter, primarily driven by an increase in demand from both the Aerospace and Industrial markets.

The company also reported that they are seeing positive growth trends across its Aerospace, Industrial, and Power Transmission product lines. Their Non-GAAP EPS and revenue exceeded estimates, resulting in a positive outlook for the future. The company is continuing to invest in new product development and gaining market share, which should translate to further growth in the long term.

Stock Price

On Friday, RBC BEARINGS released their most recent quarterly report, beating expectations with non-GAAP earnings per share of $2.13 and revenue of $394.4M. Although the report was well received by the investors, the stock opened at $227.0 and closed at $212.5, a 5.3% drop from the previous closing price of 224.3. This indicates that investors may be waiting for further guidance from the company in order to make a decision about their investment.

However, the stock has recovered slightly since. RBC BEARINGS is a manufacturer of precision bearings and components for a variety of industries, including aerospace, defense, medical, general industrial, and automotive. As the demand for precision bearings and components continues to increase, RBC BEARINGS is well-positioned to capitalize on this growth. With their strong financial performance and outlook, investors are likely to be drawn to the stock in the near future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Rbc Bearings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Rbc Bearings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Rbc Bearings. More…

Key Ratios Snapshot

Some of the financial key ratios for Rbc Bearings are shown below. More…

Analysis – Rbc Bearings Stock Fair Value

GoodWhale’s analysis of RBC BEARINGS‘ wellbeing has revealed that the company is currently undervalued by 29.7%. Our proprietary Valuation Line indicates that the intrinsic value of RBC BEARINGS’ share is around $302.2. Meanwhile, the stock is currently traded at $212.5, presenting a great buying opportunity for investors. Given the current market conditions, we believe RBC BEARINGS offers a good prospect for long-term investors. More…

Peers

They are well-known for their quality bearing solutions, technical services, and value-added services. RBC Bearings Inc is a key competitor in the bearing industry, going up against other companies such as Broadwind Inc, The Timken Co, and Donaldson Co Inc. Each company offers a unique set of products and services that are tailored to their customers’ specific needs.

– Broadwind Inc ($NASDAQ:BWEN)

Wind Inc, formerly known as Broadwind Energy, is an American engineering and manufacturing company that specializes in components and services for the energy, mining, oil and gas markets. Its market cap is 87.05M as of 2023, which is relatively small compared to other market cap competitors. This indicates that the company’s stock is not highly valued on the stock market. The Return on Equity (ROE) for Wind Inc stands at -4.19%, which suggests that there is a lack of profitability due to the company’s operations. This could be due to the fact that the company is still relatively new in the energy, mining, oil and gas markets, thus growth opportunities are still limited.

– The Timken Co ($NYSE:TKR)

The Timken Company is a leader in engineered bearings and powertrain components. With a market cap of 5.4 billion as of 2023, the company provides products to global industrial, aerospace, automotive, oil & gas, and defense industries. The Timken Company’s Return on Equity (ROE) of 17.38% suggests its ability to create wealth for investors. It has developed a strong market presence by investing heavily in research and development and providing superior customer service. The company’s products are well-regarded in the industry for their quality and performance.

– Donaldson Co Inc ($NYSE:DCI)

Donaldson Co Inc is a global leader in the filtration industry, providing filtration solutions for a wide range of air, liquid, and gas filtration applications. As of 2023, it has a market capitalization of 7.75 billion dollars, which is a testament to its success in the highly competitive filtration industry. Additionally, the company’s Return on Equity (ROE) of 25.9% is indicative of its ability to generate profits from its investments. The company has a strong commitment to research and development, ensuring that its filtration products remain innovative and cutting-edge.

Summary

RBC Bearings reported its quarterly earnings on Tuesday, with Non-GAAP earnings per share (EPS) of $2.13 beating the analyst consensus estimate by $0.27. Revenue of $394.4M also beat the consensus estimate by $14.48M. Despite these impressive numbers, the stock price moved down the same day. This, combined with high input costs, have placed pressure on the company’s profit margins.

However, there are some encouraging signs for investors. RBC Bearings has continued to make progress on its cost-cutting initiatives, and recently announced a series of strategic acquisitions that could bolster future profitability.

Additionally, the company’s financial position remains strong, with ample liquidity and no debt. Overall, RBC Bearings is an interesting stock for investors who are willing to take on some risk in exchange for potential upside. With careful monitoring and strategic decisions, shareholders could be rewarded in the long run.