RBC Bearings Leans on Aerospace Demand to Offset Industrial Weakness in 2Q

We're not expecting much change in our $47 fair value estimate for RBC Bearings following the release of fiscal second-quarter results, as a positive impact from the time value of money will probably be at least partially offset by a cut to our near-term forecast. We are keeping our narrow moat rating intact. While sales were sluggish, advancing 1.6% year over year, the company continued to improve gross margin through cost-cutting and efficiency gains; gross margin clocked in at 39.8% in the quarter compared with 37.4% in the year-ago period.