Q1 Earnings Highs And Lows: RBC Bearings (NYSE:RBC) Vs The Rest Of The Engineered Components and Systems Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how engineered components and systems stocks fared in Q1, starting with RBC Bearings (NYSE:RBC).
Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.
The 11 engineered components and systems stocks we track reported a slower Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but engineered components and systems stocks have shown resilience, with share prices up 5.7% on average since the previous earnings results.
RBC Bearings (NYSE:RBC)
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
RBC Bearings reported revenues of $413.7 million, up 4.9% year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates and a miss of analysts' Diversified Industrials revenue estimates.
“Fiscal 2024 marked another record year for RBC and we expect to carry that momentum into fiscal 2025,” said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer.
The stock is up 6.1% since reporting and currently trades at $284.12.
Is now the time to buy RBC Bearings? Access our full analysis of the earnings results here, it's free.
Best Q1: Graham Corporation (NYSE:GHM)
Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Graham Corporation reported revenues of $49.07 million, up 14% year on year, outperforming analysts' expectations by 10.3%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Graham Corporation pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.3% since reporting. It currently trades at $31.56.
Is now the time to buy Graham Corporation? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Enpro (NYSE:NPO)
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries.
Enpro reported revenues of $257.5 million, down 8.9% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 6.6% since the results and currently trades at $163.72.
Read our full analysis of Enpro's results here.
NN (NASDAQ:NNBR)
Formerly known as Nuturn, NN (NASDAQGS:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
NN reported revenues of $121.2 million, down 4.6% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 2.4% since reporting and currently trades at $3.71.
Read our full, actionable report on NN here, it's free.
Arrow Electronics (NYSE:ARW)
Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.
Arrow Electronics reported revenues of $6.92 billion, down 20.7% year on year, falling short of analysts' expectations by 1.7%. Taking a step back, it was a weak quarter for the company with a miss of analysts' Components revenue estimates.
Arrow Electronics had the slowest revenue growth among its peers. The stock is down 3.6% since reporting and currently trades at $120.47.
Read our full, actionable report on Arrow Electronics here, it's free.
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