Q1 Earnings Highs And Lows: RBC Bearings (NYSE:RBC) Vs The Rest Of The Engineered Components and Systems Stocks

Let’s dig into the relative performance of RBC Bearings (NYSE:RBC) and its peers as we unravel the now-completed Q1 engineered components and systems earnings season.

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 13 engineered components and systems stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.4% below.

Luckily, engineered components and systems stocks have performed well with share prices up 14.6% on average since the latest 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 $437.7 million, up 5.8% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.

“I am proud of our team’s outstanding performance in Fiscal 2025,” said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer.

Interestingly, the stock is up 2.3% since reporting and currently trades at $375.51.

Is now the time to buy RBC Bearings? Access our full analysis of the earnings results here, it’s free.

Best Q1: Regal Rexnord (NYSE:RRX)

Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products.

Regal Rexnord reported revenues of $1.42 billion, down 8.4% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.

The market seems happy with the results as the stock is up 32.2% since reporting. It currently trades at $145.63.

Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Park-Ohio (NASDAQ:PKOH)

Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components.

Park-Ohio reported revenues of $405.4 million, down 2.9% year on year, falling short of analysts’ expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Park-Ohio delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.4% since the results and currently trades at $17.21.

Read our full analysis of Park-Ohio’s results here.

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 $6.81 billion, down 1.6% year on year. This result topped analysts’ expectations by 7.2%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Arrow Electronics scored the biggest analyst estimates beat among its peers. The stock is up 17.4% since reporting and currently trades at $130.50.

Read our full, actionable report on Arrow Electronics here, it’s free.

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 $59.35 million, up 20.9% year on year. This print beat analysts’ expectations by 6.6%. It was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Graham Corporation pulled off the fastest revenue growth among its peers. The stock is up 16.5% since reporting and currently trades at $49.00.

Read our full, actionable report on Graham Corporation here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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