RBC Bearings Profit Tops Estimate - Update

(RTTNews) - RBC Bearings Inc (ROLL) Wednesday reported a better-than-expected increase in fourth-quarter profit, on improved demand for its products from the aerospace and industrial markets, along with better margins.

Nonetheless, investors were not too impressed with the performance, dragging down the company's stock by about 4.5 percent in morning trade on the Nasdaq.

RBC makes precision plain, roller, and ball bearings. The Oxford, Connecticut-based company posted quarterly net earnings of $18.2 million or $0.78 per share, compared with $10.6 million or $0.46 per share last year.

Results for the prior-year quarter included restructuring charges of $5.4 million.

Excluding items, adjusted earnings for the quarter were $17.1 million or $0.73 per share, compared with $15.9 million or $0.69 per share a year ago.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for fourth quarter climbed 10.4 percent to $113.7 million from $103 million in the prior year. Analysts expected sales of $111.2 million for the quarter.

Among segments, aerospace and defense markets increased 12.9 percent, led by commercial aircraft build rates and the contribution from acquisitions. Industrial sales grew 7.3 percent, led mainly by energy, construction and general industrial activity.

Gross margin for the quarter improved by 30 basis points at 39.8 percent, while operating margin climbed to 22.1 percent from 15.3 percent.

The company's stock is trading at $59.60, down $2.90 or 4.64%, on a volume of 112k shares.