NASDAQ$RBC

RBC Bearings Incorporated · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by both industrial and aerospace sectors, with excellent execution and improved supply chain performance leading to record-breaking operating results.

RBC Bearings reported a significant increase in net sales for the second quarter of fiscal 2023, driven by strong performance in both the industrial and aerospace sectors. The acquisition of Dodge contributed substantially to the industrial segment's growth. Increased gross margin and operating income reflect improved manufacturing and supply chain efficiencies. Net income and EPS also showed substantial improvement compared to the same period last year.

  • Net sales increased by 129.4% to $369.2 million, including 9.9% organic growth.
  • Industrial segment net sales increased by 290.7%, including $192.3 million from Dodge acquisition.
  • Aerospace/Defense segment net sales increased by 11.4%.
  • Diluted EPS was $1.31, compared to a loss of $0.07 in the same quarter last year.

Headline financials

Total Revenue

$369M

Previous: $161M+129.4%
EPS (adj)

$1.93

Previous: $0.89+116.9%
Capital Expenditures

-$23.1M

Previous: -$6.88M-235.3%
Free Cash Flow

$20.7M

Previous: $47K+43997.9%
Net Income

$43.8M

Previous: $6.93M+532.2%
Operating Income

$72M

Previous: $27.1M+165.5%
Gross Profit

$151M

Previous: $62.5M+142.0%
Cash & Equivalents

$88.5M

Previous: $1.35B-93.4%
Total Assets

$4.73B

Previous: $2.57B+84.1%
Stock-Based Comp

$4.37M

Previous: $4.81M-9.2%

Revenue & EPS history

RBC Bearings · Revenue · Quarterly

$369M

Q2 2023+129.4%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The Company expects net sales to be approximately $348.0 million to $360.0 million in the third quarter of fiscal 2023, compared to $267.0 million last year, a growth rate of 30.4% to 34.9%.

Tailwinds

  • Net sales are expected to be between $348.0 million and $360.0 million.
  • Growth rate is projected to be between 30.4% and 34.9% compared to the previous year.
  • The company has entered into a three-year USD-denominated interest rate swap to protect from interest rate volatility.
  • The swap has an effective date of December 30, 2022, and is comprised of a $600.0 million notional with a maturity of three years.
  • RBC will receive a variable rate based on one-month USD-SOFR CME Term and will pay a fixed rate of 4.455%.

Headwinds

  • Third quarter typically has fewer production days than the fourth quarter.
  • Interest expense, net, was $18.3 million for the second quarter of fiscal 2023 compared to $15.8 million for the same period last year.
  • SG&A for the second quarter of fiscal 2023 was $57.5 million, an increase of $17.3 million from $40.2 million for the same period last year.
  • Other operating expenses for the second quarter of fiscal 2023 totaled $21.6 million compared to $5.7 million for the same period last year.
  • Income tax expense for the second quarter of fiscal 2023 was $9.7 million compared to $2.4 million for the same period last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+4.8%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+16.9%

Q4 2022

Best reaction

-18.9%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-6.9%-6.8%-1.5%
Q3 2026+0.7%+5.9%+7.0%
Q2 2026+5.4%+6.1%+9.5%
Q4 2025+0.4%-0.1%+0.9%
Q3 2025+8.3%+14.7%+11.5%
Q2 2025+1.7%+12.9%+19.5%
Q1 2025-4.8%-5.4%+3.4%
Q4 2024+11.0%+9.9%+1.8%
Q3 2024-2.5%-3.2%-1.8%
Q2 2024+4.6%+9.8%+20.0%
Q1 2024+5.2%+5.5%+9.0%
Q4 2023-3.3%-8.7%-6.8%
Q3 2023+0.0%+1.5%-6.1%
Q2 2023-2.6%+1.2%-8.4%
Q1 2023-2.8%-1.9%-4.9%
Q4 2022+16.9%+17.2%+14.6%
Q3 2022-0.9%+2.4%+7.6%
Q2 2022-2.0%-7.2%-12.2%
Q1 2022+0.3%-2.1%-0.2%
Q2 2021+9.2%-1.2%-0.3%
Q4 2021+1.0%+1.7%+1.1%
Q1 2021+0.2%+2.8%-1.2%
Q4 2020+0.6%+2.3%+7.5%
Q3 2021+2.0%+2.8%+13.9%
Q3 2020+4.4%+4.4%+42.5%
Q2 2020+0.7%+7.7%+10.0%
Q1 2020+4.6%+1.6%+16.2%
Q4 2019+8.1%+15.7%+11.3%
Q3 2019+8.3%+2.7%-0.7%
Q2 2019-5.2%-0.9%-3.3%
Q1 2019-4.5%-3.3%+5.1%
Q4 2018+6.5%-6.8%-1.6%
Q3 2018+1.3%-4.9%-14.1%
Q2 2018-2.0%-0.0%+9.3%
Q1 2018+6.7%+6.0%+13.3%
Q4 2017-4.3%-3.4%+0.8%
Q3 2017-5.4%-0.5%+3.5%
Q2 2017-3.2%+0.8%+5.7%
Q1 2017-4.2%-3.1%+2.2%
Q4 2016+1.2%+2.6%-3.6%
Q3 2016+9.0%+17.2%+21.3%
Q2 2016+0.4%-1.3%+1.7%
Q1 2016-10.4%
Q4 2015-10.5%
Q3 2015-1.5%
Q2 2015+3.9%
Q1 2015+0.6%
Q4 2014+2.7%
Q3 2014-1.4%
Q2 2014-7.2%
Q1 2014+1.3%
Q4 2013-2.5%
Q3 2013-0.9%
Q2 2013-7.5%
Q1 2013-18.9%
Q4 2012+3.0%
Q3 2012-4.1%
Q2 2012-2.6%
Q4 2009-2.8%
Q1 2012-6.6%
Q4 2011+1.5%
Q3 2010+1.2%
Q3 2011+1.2%
Q2 2010+1.1%
Q2 2011+1.1%
Q1 2010-1.9%
Q4 2010-1.9%
Q1 2011-1.9%

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