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RBC Bearings Inc. (ROLL - Analyst Report) reported fiscal third-quarter 2014 (ended Dec 28, 2013) adjusted earnings of 55 cents per share, down 16.7% compared with the Zacks Consensus Estimate of 66 cents. Adjusted earnings increased 3.8% year over year.

Revenues: Net sales in fiscal third-quarter 2014 were $100.5 million, up 4.4% year over year primarily due to the contribution from acquisitions. Also, revenues got a boost from the hike in aerospace and defense segment which was offset by a decline in the industrial segment. However, revenues missed the Zacks Consensus Estimate of $106.0 million by 5.2%. Revenue details of each segment are being discussed hereunder:

Plain Bearings segment revenues (52.7% of third-quarter total sales) were up 2.9% year over year to $53.0 million. Roller Bearings segment sales (27.1%) rose 4.5% to $27.3 million. Ball Bearings segment sales (13.0%) were $13.1 million, up 21.1% year over year. Other sales (7.2%) were $7.2 million, down 9.2% year over year.

Exiting the quarter, backlog amounted to $218.6 million compared with $211.3 million as on Dec 29, 2012.

Margins: In the reported quarter, RBC Bearings’ cost of sales represented 61.7% of total revenue, compared with 62.3% in the year-ago quarter. Selling, general and administrative expenses were roughly $18.3 million and accounted for 18.2% of total revenue. Operating margin in the quarter was recorded at 19.6%, decreasing 30 basis points year over year.

Balance Sheet: RBC Bearings' cash and cash equivalents increased to $118.3 million exiting the third quarter of fiscal 2014 against $112.3 million in the previous quarter. Total debt balance came in at $10.7 million versus $10.5 million reported in the preceding sequential quarter.

Cash Flow: In the fiscal-third quarter 2014, cash flow from operating activities was recorded at $14.4 million versus $19.5 million a year ago. Capital spending was recorded at $8.0 million compared with $19.2 million in the third quarter of fiscal 2013.

Other Stocks to Consider

RBC Bearings currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Worthington Industries, Inc. (WOR - Snapshot Report), Century Aluminum Co. (CENX - Snapshot Report) and CIRCOR International, Inc. (CIR - Snapshot Report). While Worthington Industries sports a Zacks Rank #1 (Strong Buy), Century Aluminum and CIRCOR International hold a Zacks Rank #2 (Buy).

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