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RBC Bearings Inc. (ROLL - Analyst Report) 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 - Snapshot Report), Constellium N.V (CSTM - Snapshot Report) and Dynamic Materials Corp. (BOOM - Snapshot Report). All of these carry a Zacks Rank #1 (Strong Buy).

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