RBC Bearings Incorporated (NYSE:RBC) shares are trading higher after it reported fourth-quarter FY24 results.
Net sales rose 4.9% Y/Y to $413.7 million, beating the consensus of $413.5 million.
By segment, Aerospace/Defense revenue grew 16.8% Y/Y, while Industrial revenue declined 0.4% Y/Y in the quarter.
Adjusted gross margin expanded to 43.1% from 42.2% in the same quarter a year ago, and adjusted EBITDA margin rose to 31.4% from 30.7% last year.
As of March 30, 2024, the backlog stood at $726.1 million. Adjusted EPS increased 16.0% Y/Y to $2.47, surpassing the street view of $2.36.
Michael J. Hartnett, Chairman and Chief Executive Officer, said, “Our Aerospace and Defense segment continued its strong secular growth with revenues expanding 20.7% in the year, and our Industrial segment continued to outpace broader industry trends with notable outgrowth relative to peers.”
“We also delivered healthy margin expansion fueled by operating efficiencies and ongoing Dodge synergies coupled with record levels of free cash flow generation, which was used to further reduce debt to a post-Dodge low. We look to another year of strong free cash flow generation and debt reduction, with the company poised to finish Fiscal 2025 with net leverage nicely below 2.0x.”
Outlook: For the first quarter FY25, the company expects net sales of $415.0 million to $420.0 million versus the consensus of $408.0 million.
Investors can gain exposure to the stock via First Trust RBA American Industrial Renaissance ETF (NASDAQ:AIRR) and Neuberger Berman ETF Trust Neuberger Berman Small-Mid Cap ETF (NYSE:NBSM).
Price Action: RBC shares are up 4.28% at $279.00 at the last check Friday.
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