Metal products company
RBC Bearings Inc.
) reported fiscal fourth quarter 2013 financial results with
adjusted earnings of 69 cents per share, beating the Zacks
Consensus Estimate of 63 cents per share. Efficiency gains as
well as margin expansion facilitated the beat. However, the
results were flat when compared with the year-ago earnings.
For fiscal 2013, RBC reported earnings of $2.43 per share,
beating the Zacks Consensus Estimate of $2.38 per share.
Net sales in the fiscal fourth quarter were $103.0 million, down
7.5% year over year due to a decline witnessed in the Industrial
segment, which was partly offset by a rise in the sales in
aerospace and defense segment. Revenue also missed the Zacks
Consensus Estimate of $108.0 million by 4.6%. Revenue detail of
each segment is discussed below:
Plain Bearings segment revenue (54.2% of fourth quarter total
sales) was down 1.5% year over year to $55.8 million. Roller
Bearings segment sales (26.7%) dropped 21.8% to $27.5 million.
Ball Bearings segment sales (10.9%) were $11.2 million, down 1.6%
year over year. Other sales (8.2%) were $8.5 million, up 3.9%
year over year.
In fiscal 2013, RBC generated $403.1 million revenue, missing
the Zacks Consensus Estimate of $407.0 million by 1.2%.
In the reported quarter, RBC Bearing's cost of goods sold
represented 60.5% of total revenue, compared with 63.0% in the
year-ago quarter. Selling, general and administrative expenses
were roughly $17.3 million and accounted for 16.8% of total
revenue. Adjusted operating margin in the quarter was recorded at
22.0%, increasing 40 basis points year over year.
RBC Bearing's cash and cash equivalents increased to $115.8
million exiting the fourth quarter of fiscal 2013 against $113.2
million in the previous quarter. Total debt balance came in at
$10.3 million versus $10.9 million reported in the preceding
In fiscal 2013, cash flow from operating activities was recorded
at $66.3 million versus $45.0 million a year-ago. Capital
spending was recorded at a high of $42.0 million against $17.8
million in the fiscal 2012.
In early March, the company acquired Western Precision Aero
LLC, a manufacturer of precision components and gears. The
transaction was valued at $2.6 million.
The step seems to fit the company's strategy of increasing its
product offerings for customers. Revenue generated from the
acquisition is included in the Plain Bearings segment of the
RBC currently carries a Zacks Rank #4 (Sell). Other stocks
worth a watch in the industry are
), carrying a Zacks Rank #1 (Strong Buy); while,
Northwest Pipe Co.
Precision Castparts Corp.
) hold a Zacks Rank #2 (Buy).
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NORTHWEST PIPE (NWPX): Free Stock Analysis
PRECISION CASTP (PCP): Free Stock Analysis
RBC BEARINGS (ROLL): Free Stock Analysis
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