Premium machine tools & accessories company, RBC Bearings Inc. reported better-than-expected second-quarter fiscal 2017 results.
Adjusted earnings for the quarter came in at 78 cents per share, a penny above than the Zacks Consensus Estimate. The bottom line also surpassed the year-ago tally of 76 cents per share.
Revenues
Net sales of $153.9 million were up 3.5% year over year. The upside was driven by higher sales of the company’s aerospace and defense products.
Quarterly revenues also marginally surpassed the Zacks Consensus Estimate of $153 million.
Margins/Costs
RBC Bearings’ cost of sales during the quarter was $97.2 million, up 0.7% year over year. This metric represents 63.1% of aggregate revenues.
Adjusted gross margin contracted 100 basis points (bps) year over year to 36.9%. Total operating expenses were $27.2 million, down 4.7% year over year.
RBC Bearings exited the quarter with backlog of $341.8 million compared with $347.8 million as of Jun 27, 2015.
Segmental Performance
Plain Bearings revenues grew 1.8% year over year to $68.8 million, whereas Roller Bearings sales fell 1.3% to $26.8 million. Ball Bearings sales were $14.6 million, up 11% year over year. Engineered Products sales climbed 7.2% year over year to $43.7 million.
Other Financial Fundamentals
RBC Bearings exited the quarter with total debt of $330.1 million, lower than $402.3 million in the year-ago comparable period.
In the fiscal second quarter, RBC Bearings generated $19.3 million of cash from its operating activities as against $18.1 million in the prior-year quarter. Capital spending declined 1.6% year over year to $4.5 million.
Outlook
RBC Bearings continues to project a positive outlook. The company anticipates that its latest acquisitions would boost growth in revenues and margins, going ahead. It also intends to enhance its earnings and backlog through greater operational efficiency in the future.
Zacks Rank and Stocks to Consider
RBC Bearings currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the industry that warrant a look include:
ACCO Brands Corporation (ACCO - Free Report) currently carries a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 23.93% over the four trailing quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies, Inc. (AIT - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 4.93% over the last four quarters.
AO Smith Corp. (AOS - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 6.45% over the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Premium machine tools & accessories company, RBC Bearings Inc. reported better-than-expected second-quarter fiscal 2017 results.
Adjusted earnings for the quarter came in at 78 cents per share, a penny above than the Zacks Consensus Estimate. The bottom line also surpassed the year-ago tally of 76 cents per share.
Revenues
Net sales of $153.9 million were up 3.5% year over year. The upside was driven by higher sales of the company’s aerospace and defense products.
Quarterly revenues also marginally surpassed the Zacks Consensus Estimate of $153 million.
Margins/Costs
RBC Bearings’ cost of sales during the quarter was $97.2 million, up 0.7% year over year. This metric represents 63.1% of aggregate revenues.
Adjusted gross margin contracted 100 basis points (bps) year over year to 36.9%. Total operating expenses were $27.2 million, down 4.7% year over year.
RBC Bearings exited the quarter with backlog of $341.8 million compared with $347.8 million as of Jun 27, 2015.
Segmental Performance
Plain Bearings revenues grew 1.8% year over year to $68.8 million, whereas Roller Bearings sales fell 1.3% to $26.8 million. Ball Bearings sales were $14.6 million, up 11% year over year. Engineered Products sales climbed 7.2% year over year to $43.7 million.
Other Financial Fundamentals
RBC Bearings exited the quarter with total debt of $330.1 million, lower than $402.3 million in the year-ago comparable period.
In the fiscal second quarter, RBC Bearings generated $19.3 million of cash from its operating activities as against $18.1 million in the prior-year quarter. Capital spending declined 1.6% year over year to $4.5 million.
Outlook
RBC Bearings continues to project a positive outlook. The company anticipates that its latest acquisitions would boost growth in revenues and margins, going ahead. It also intends to enhance its earnings and backlog through greater operational efficiency in the future.
Zacks Rank and Stocks to Consider
RBC Bearings currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the industry that warrant a look include:
ACCO Brands Corporation (ACCO - Free Report) currently carries a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 23.93% over the four trailing quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies, Inc. (AIT - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 4.93% over the last four quarters.
AO Smith Corp. (AOS - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 6.45% over the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on AOS - FREE
Get the latest research report on AIT - FREE
Get the latest research report on ACCO - FREE