RBC

Watsco (WSO) surged 7.2% following announcement of a new $750 million five-year revolving credit facility to support working capital, acquisitions, and dividends. The company benefits from its HVAC distribution network and e-commerce growth, with expected quarterly earnings of $4.13 per share (+3.8% YoY) and revenues of $2.21 billion (+7.1% YoY).

EPS estimates were revised 1.8% higher over the past month. Meanwhile, RBC Bearings (RBC) declined 5.2%, though it maintains a +23.3% YoY EPS growth expectation.

RBC Bearings is expected to report Q3 2026 earnings of $3.55 per share (up 23.3% YoY) with revenues of $516.18 million (up 13.4% YoY) on October 30. However, despite a positive Earnings ESP of +1.22%, the stock's Zacks Rank of #4 makes it difficult to predict an earnings beat. The company has a strong history of beating estimates in the last four quarters.

RBC Bearings' Aerospace & Defense segment revenues surged 36.9% in fiscal Q1 2027 to $225.4 million, driven by commercial aerospace growth (21.8%) and robust defense demand (64.6%). The company projects Q2 sales of $505-$515 million with 10.9%-13.1% year-over-year growth, supported by a $2.3 billion backlog and strong U.S. defense budgetary provisions.

Parker-Hannifin's Aerospace Systems segment demonstrated robust performance with 13.3% organic revenue growth in fiscal Q4 2026 and orders up 18%. The segment's backlog reached a record $8.5 billion, driven by strong commercial aerospace and defense demand.

The company projects 7-10% organic sales growth for fiscal 2027 and issued bullish guidance expecting total sales to increase 5.5-8.5% year over year. Parker-Hannifin also agreed to acquire CIRCOR International's Commercial and Defense Aerospace business for $2.55 billion.