RBC Bearings Misses on Top & Bottom - Analyst Blog


RBC Bearings Inc. ( ROLL ) reported fiscal second-quarter 2014 adjusted earnings of 64 cents per share, missing the Zacks Consensus Estimate of 66 cents by two cents. Adjusted earnings increased 6.7% year over year.

On a GAAP basis, earnings per share came in at 61 cents, a decline of 16.4% year over year, due to consolidation and restructuring of large bearing facilities.

Revenues: Net sales in second-quarter fiscal 2014 were $102.0 million, up 1.6% year over year driven by improvement in the aerospace and defense segment. However, revenues missed the Zacks Consensus Estimate of $105.0 million. Revenue details of each segment are discussed here:

The Plain Bearings segment's revenues (51.8% of the second quarter's total sales) were down 0.8% year over year to $52.8 million. Sales from the Roller Bearings segment (29.7%) declined 0.8% year over year to $30.3 million. The Ball Bearings segment (11.0%) recorded sales of $11.2 million, an increase of 12.2% year over year. The Other segment's sales (7.5%) were $7.6 million, up 8.2% year over year.

Exiting the second quarter, RBC Bearings had a backlog of $222.3 million, compared with $216.1 million in the year-ago quarter.

Margins: In the reported quarter, RBC Bearings' cost of goods sold represented 60.2% of total revenue, compared with 62.6% in the year-ago quarter. Selling, general and administrative expenses were roughly $17.1 million and accounted for 16.8% of total revenue. Adjusted operating margin in the quarter was recorded at 22.4%, increasing 125 basis points year over year.

Balance Sheet: RBC Bearings' cash and cash equivalents stood at $112.3 million exiting the second quarter of fiscal 2014 against $128.1 million in the previous quarter. Total debt balance came in at $10.5 million versus $10.2 million reported in the preceding quarter.

Cash Flow: In the reported quarter, cash flow from operating activities was recorded at $4.2 million versus $3.2 million a year ago. Capital spending was recorded at $8.8 million improved from $5.5 million in the second quarter of fiscal 2013.

Other Stocks to Consider

RBC Bearings holds a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include CIRCOR International, Inc. ( CIR ), Constellium N.V ( CSTM ) and Dynamic Materials Corp. ( BOOM ). All of these carry a Zacks Rank #1 (Strong Buy).

DYNAMIC MATLS (BOOM): Free Stock Analysis Report

CIRCOR INTL (CIR): Free Stock Analysis Report

CONSTELLIUM NV (CSTM): Free Stock Analysis Report

RBC BEARINGS (ROLL): 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 , Stocks

Referenced Stocks: BOOM , CIR , CSTM , ROLL



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