RBC Bearings Q3 Earnings Surpass Estimates, Revenues Up Y/Y

RBC Bearings Incorporated’s RBC third-quarter fiscal 2025 (ended Dec. 28, 2024) adjusted earnings of $2.34 per share beat the Zacks Consensus Estimate of $2.20. The figure increased 26.5% from the year-ago adjusted earnings of $1.85 per share, supported by higher revenues.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.RBC’s Revenue DetailsRBC Bearings’ revenues were $394.4 million, which increased 5.5% year over year. However, the figure missed the Zacks Consensus Estimate of $401 million.While exiting the reported quarter, RBC had a backlog of $896.5 million compared with $864 million reported at the end of the second quarter of fiscal 2025 (ended Sept. 28, 2024).RBC Bearings’ Segmental DetailsThe company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal third quarter is briefly discussed below:Industrial revenues of $143.2 million (representing 63.7% of the quarter’s revenues) were up 2.7% year over year.Aerospace/Defense revenues totaled $149.1 million (36.3%), up 10.8% year over year.RBC Bearings Incorporated Price, Consensus and EPS Surprise RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated QuoteRBC’s Margin ProfileThe company’s cost of sales rose 1.7% year over year to $219.5 million. Gross profit grew 10.7% to $174.9 million. The margin expanded 200 basis points (bps) to 44.3%.Selling, general and administrative expenses were $70.1 million, up 9.7% year over year. Adjusted EBITDA jumped 12% to $122.6 million. The adjusted EBITDA margin was 31.1%, up 180 bps year over year.Adjusted operating income increased 13.7% year over year to $85.7 million. The adjusted margin increased 150 bps to 21.7%. Net interest expenses were $14.2 million compared with $19.3 million in the year-ago quarter.RBC Bearings’ Balance Sheet and Cash FlowAt the time of exiting the fiscal third quarter, RBC had cash and cash equivalents of $60.6 million compared with $63.5 million at the end of the year-ago fiscal quarter. Long-term debt (less current portion) was $999.7 million, down from $1.19 billion at the end of the year-earlier fiscal quarter.In the first nine months of fiscal 2025, the company generated net cash of $224.4 million from operating activities, which increased 15% on a year-over-year basis. Capital expenditure of $35.6 million increased 50.2% year over year.In the first nine months of fiscal 2025, RBC Bearings repurchased shares worth $8.6 million, up 13.2% year over year.RBC’s OutlookFor the fiscal fourth quarter, management anticipates net sales to be in the range of $434-$444 million, indicating an increase of 4.9-7.3% from the prior-year figure of $413.7 million.RBC Bearings’ Zacks RankThe company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Industrial CompaniesTetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Waste Management, Inc. 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