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RBC Bearings Q4 Earnings Beat by a Penny, Revenues Lag - Analyst Blog

RBC Bearings Inc.ROLL reported mixed results for fourth-quarter fiscal 2015. The company's earnings came in at 73 cents per share, in line with the year-ago quarter tally but a penny ahead of the Zacks Consensus Estimate.

Rbc Bearings Inc. - Earnings Surprise | FindTheCompany

On the contrary, net sales of $113.4 million fell 0.3% year over year and came below the Zacks Consensus Estimate of $115 million

Management hinted that benefits reaped from higher industrial sales were offset by a fall in aerospace and defense sales. Moreover, currency headwinds hurt quarterly sales by approximately $1 million.

RBC Bearings' cost of sales during the quarter remained almost flat at $68.5 million, representing 60.4% of total revenue versus 60.2% in the year-ago quarter. Adjusted gross margin decreased 20 basis points (bps) year over year to 39.6%. Total operating expenses stood at $19.6 million, down 2.4% year over year.

Exiting the quarter, backlog was $209.6 million versus $218.4 million as on Mar 29, 2014.

For full-year fiscal 2015, the company's earnings were $2.74 per share; up 6.2% from the year-ago tally. Net sales for the fiscal year totaled $445.3 million, up 6.3% from the prior year. For entire fiscal, adjusted gross margin decreased 30 bps year over year to 39%; while adjusted operating income stood at 21.7%, flat year over year.

Other Financial Fundamentals

RBC Bearings exited the quarter with cash and short-term investments of $125.5 million compared with $123.6 million on Mar 29, 2014. Total debt was $9.2 million versus $10.4 million recorded at fiscal 2014 year-end.

In fourth-quarter fiscal 2015, RBC Bearings generated $9.4 million of cash from its operating activities, down from $12 million in the prior-year quarter. Capital spending declined 20.2% year over year to $5 million.

During fiscal 2015, RBC Bearings paid dividends worth $46 million to its shareholders and repurchased $7.1 million of shares.

Segmental Details

Plain Bearings revenues were down 1.9% year over year to $59.1 million, while Roller Bearings sales rose 7.3% to $32.1 million. Ball Bearings sales were $14.8 million, down 6.7% year over year. Other sales totaled $7.5 million, down 3.9% year over year.

Outlook

We believe RBC Bearings' fourth-quarter fiscal 2015 results were adversely impacted by a strong U.S. dollar and weak sales in aerospace & defense segment. However, the company continues to project a positive outlook, expecting the benefits of its new Sargent Aerospace & Defense business acquisition and superior industrial sales to support growth in its revenues and margin in the quarters ahead.

RBC Bearings currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the industry include Middleby Corp. MIDD , Albany International Corp. AIN and Astec Industries, Inc. ASTE . All three stocks hold a Zacks Rank #2 (Buy).

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


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

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