RBC Bearings Beats on Q4 Earnings, Revs - Analyst Blog

RBC Bearings Inc. ROLL reported fiscal fourth-quarter 2014 (ended Mar 29, 2014) adjusted earnings of 73 cents per share, up 2.8% from the Zacks Consensus Estimate of 71 cents. Adjusted earnings increased 5.8% year over year.

On a GAAP-basis, the company reported earnings of 78 cents per share, compared with 46 cents generated in the year-ago quarter.

For fiscal 2014, RBC Bearings generated adjusted earnings of $2.58 per share, beating the Zacks Consensus Estimate of $2.56 by 2 cents. On a GAAP-basis, yearly earnings came in at $2.59 per share, up 4.9% year over year.

Revenues: Net sales in fiscal fourth-quarter 2014 were $113.7 million, up 10.4% year over year primarily due to the contribution from acquisitions. Also, revenues got a boost from the sales hike in aerospace and defense markets along with a hike in the industrial market. Moreover, revenues marginally beat the Zacks Consensus Estimate of $113.0 million. Revenue details of each segment are being discussed below:

Plain Bearings segment revenues (52.9% of fourth-quarter total sales) were up 7.9% year over year to $60.2 million. Roller Bearings segment sales (26.3%) rose 8.9% to $29.9 million. Ball Bearings segment sales (13.9%) were $15.8 million, up 41.2% year over year. Other sales (6.9%) were $7.8 million, down 8.7% year over year.

Yearly revenues were $418.9 million, marginally above the Zacks Consensus Estimate of $417.0 million and up 3.9% year over year. Exiting the fiscal year, backlog amounted to $218.4 million compared with $216.5 million as on Mar 30, 2013.

Margins: RBC Bearings' cost of sales represented 60.2% of total revenue, compared with 60.5% in the prior-year quarter. Selling, general and administrative expenses were nearly $19.6 million and accounted for 17.2% of total revenue. Adjusted operating margin was recorded at 22.1%, increasing 10 basis points year over year.

Balance Sheet: RBC Bearings' cash and cash equivalents increased to $123.6 million exiting the fourth quarter of fiscal 2014 against $118.3 million in the previous quarter. Total debt balance came in at $10.4 million versus $10.7 million reported in the preceding sequential quarter.

Cash Flow: In the fiscal-fourth quarter 2014, cash flow from operating activities was recorded at $12.0 million versus $17.0 million a year ago. Capital spending was recorded at $6.3 million compared with $11.2 million in the fourth quarter of fiscal 2013.

Post the quarter-end, the company announced a special dividend of $2.00 per share, amounting to $46.0 million. The dividend will be paid on Jun 13, 2014, to shareholders as on May 30, 2014.

RBC Bearings currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include NN Inc. NNBR, Timken Co. TKR and Northwest Pipe Co. NWPX. While NN Inc. sports a Zacks Rank #1 (Strong Buy), Timken and Northwest Pipe hold a Zacks Rank #2 (Buy).