RBC Bearings Earnings: Here’s Why Investors are Happy Now

RBC Bearings Inc. (NASDAQ:ROLL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 8.69%.

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RBC Bearings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.69 in the quarter as EPS of $0.69 in the year-earlier quarter.

Revenue: Decreased 7.47% to $103 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RBC Bearings Inc. reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $107.34 million.

Quoting Management: “Our fourth quarter results continued to benefit from our focus on efficiency gains and margin expansion. Additionally, we expect further gross margin improvements going forward as we begin to realize the benefits of the consolidation and restructuring actions we took over the quarter,” said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer. “We are pleased with our fiscal 2013 results in which we delivered significant margin expansion and earnings growth, with sales growth reflective of strong aerospace demand largely offset by normalized industrial demand.”

Key Stats (on next page)…

EPS increased 30.19% from $0.53 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.67 to a profit $0.68. For the current year, the average estimate has moved down from a profit of $2.42 to a profit of $2.39 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)