OXFORD, Conn. - RBC (TSX:RY) Bearings Incorporated (NYSE: NYSE:RBC) reported fiscal third quarter earnings that met analyst expectations, while revenue came in slightly below estimates. The company also provided revenue guidance for the fourth quarter.
RBC Bearings reported adjusted earnings per share of $2.29 for the third quarter, in line with analyst estimates. Revenue for the quarter was $397.9 million, up 3.2% year-over-year but below the consensus estimate of $403.89 million.
The company's Aerospace and Defense segment saw strong growth, with sales increasing 12.5% compared to the same quarter last year. However, this was partially offset by a 1.4% decline in Industrial segment sales.
"RBC delivered another quarter of strong operational performance with total A&D sales up 12.5% year over year and Industrial sales down only 1.4% year over year," said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer.
For the fourth quarter, RBC Bearings expects revenue to be between $390 million and $400 million. This guidance range compares to analyst expectations of $395 million.
The company noted that demand remains robust in its aerospace and defense markets. While industrial markets were softer, management expressed confidence that the segment can return to growth this fiscal year.
RBC Bearings' gross margin improved to 43.7% in Q3, up from 43.1% in the year-ago quarter. Operating income declined slightly to $86.1 million compared to $87.8 million last year.
The company ended the quarter with a backlog of $864.0 million, up from $762.4 million at the end of Q3 last year.
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