RBC Bearings Misses on Q3 Earnings, Revs - Analyst Blog


RBC Bearings Inc. ( ROLL ) reported fiscal third-quarter 2014 (ended Dec 28, 2013) adjusted earnings of 55 cents per share, down 16.7% compared with the Zacks Consensus Estimate of 66 cents. Adjusted earnings increased 3.8% year over year.

Revenues: Net sales in fiscal third-quarter 2014 were $100.5 million, up 4.4% year over year primarily due to the contribution from acquisitions. Also, revenues got a boost from the hike in aerospace and defense segment which was offset by a decline in the industrial segment. However, revenues missed the Zacks Consensus Estimate of $106.0 million by 5.2%. Revenue details of each segment are being discussed hereunder:

Plain Bearings segment revenues (52.7% of third-quarter total sales) were up 2.9% year over year to $53.0 million. Roller Bearings segment sales (27.1%) rose 4.5% to $27.3 million. Ball Bearings segment sales (13.0%) were $13.1 million, up 21.1% year over year. Other sales (7.2%) were $7.2 million, down 9.2% year over year.

Exiting the quarter, backlog amounted to $218.6 million compared with $211.3 million as on Dec 29, 2012.

Margins: In the reported quarter, RBC Bearings' cost of sales represented 61.7% of total revenue, compared with 62.3% in the year-ago quarter. Selling, general and administrative expenses were roughly $18.3 million and accounted for 18.2% of total revenue. Operating margin in the quarter was recorded at 19.6%, decreasing 30 basis points year over year.

Balance Sheet: RBC Bearings' cash and cash equivalents increased to $118.3 million exiting the third quarter of fiscal 2014 against $112.3 million in the previous quarter. Total debt balance came in at $10.7 million versus $10.5 million reported in the preceding sequential quarter.

Cash Flow: In the fiscal-third quarter 2014, cash flow from operating activities was recorded at $14.4 million versus $19.5 million a year ago. Capital spending was recorded at $8.0 million compared with $19.2 million in the third quarter of fiscal 2013.

Other Stocks to Consider

RBC Bearings currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Worthington Industries, Inc. ( WOR ), Century Aluminum Co. ( CENX ) and CIRCOR International, Inc. ( CIR ). While Worthington Industries sports a Zacks Rank #1 (Strong Buy), Century Aluminum and CIRCOR International hold a Zacks Rank #2 (Buy).

CENTURY ALUM CO (CENX): Free Stock Analysis Report

CIRCOR INTL (CIR): Free Stock Analysis Report

RBC BEARINGS (ROLL): Free Stock Analysis Report

WORTHINGTON IND (WOR): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CENX , CIR , ROLL , WOR



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