Results: RBC Bearings Incorporated Exceeded Expectations And The Consensus Has Updated Its Estimates
RBC Bearings Incorporated (NYSE:RBC) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.0% to hit US$520m. RBC Bearings reported statutory earnings per share (EPS) US$3.20, which was a notable 13% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from RBC Bearings' seven analysts is for revenues of US$2.13b in 2027. This reflects a decent 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to US$11.97. In the lead-up to this report, the analysts had been modelling revenues of US$2.12b and earnings per share (EPS) of US$12.14 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for RBC Bearings
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$633. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values RBC Bearings at US$686 per share, while the most bearish prices it at US$490. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RBC Bearings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that RBC Bearings' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. Even after the forecast slowdown in growth, it seems obvious that RBC Bearings is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for RBC Bearings going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether RBC Bearings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.