Shares of RBC Bearings Incorporated (ROLL) hit a new 52-week high of $61.98 on Aug 26, and eventually closed at $61.72. Shares of this bearings producer have been on a rise since it reported improved year-over-year results for the first quarter of fiscal 2014, along with the latest acquisition of Climax Metal Products Company.
Year-to-date, share prices have recorded a healthy return of 23.3%. The company’s long-term estimated earnings per share growth rate is 14.4%. Average volume of shares traded over the last three months came in 82.4K.
On Aug 6, RBC Bearings reported adjusted earnings per share of 66 cents, increasing 6.5% year over year. The results were helped by a spurting demand in the Aerospace and Defense segment which was offset by a decline in the Industrial segment. Moreover, going forward, the company expects to increase its revenue generation from defense and aerospace businesses on the back of increased activities in the worldwide commercial aircraft industry.
RBC Bearings recently acquired the Mentor, Ohio-based Climax Metal Products Company for $13.6 million. Climax Metal produces precision shaft collars, rigid couplings, keyless locking devices and bearings for the industrial markets. The acquisition is expected to be accretive to RBC Bearings’ earnings in the quarters to come.
In April, RBC Bearings also acquired Western Precision Aero LLC, a manufacturer of precision components and gears, for $2.6 million. The step seems to be in line with the company’s strategy to increase its product offerings to the customers.
Additionally, the company has consistently returned value to the shareholders through share buybacks. Earlier this year, RBC Bearings announced a share repurchase plan worth $50.0 million.
Other Stocks to Consider
RBC Bearings currently carries a Zacks Rank #3 (Hold). Other stocks worth a watch in the metal industry are NN Inc. (NNBR), Northwest Pipe Co. (NWPX) and CIRCOR International, Inc. (CIR). While NN Inc. and Northwest Pipe Steel carry a Zacks Rank #1 (Strong Buy), CIRCOR International carries a Zacks Rank #2 (Buy).
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